Dubai index gains most in 4 months, leads region

Some sellers were trapped as UAE indices witnessed sharp reversal

Published: 16:51 September 22, 2016

Siddesh Suresh Mayenkar, Senior Reporter

Dubai: UAE indices witnessed sharp reversal, gaining the most since May, as broad-based fresh buying was witnessed in almost stocks in Dubai and Abu Dhabi, though sellers, who had been active in the past few sessions, were trapped.

The Dubai Financial Market General Index closed 1.96 per cent higher at 3,513.57, the biggest daily gain since May 25, when it gained 1.87 per cent.

“There was no change in the Fed decision, and oil rallied, so GCC markets responded,” said Ahmad Waheed, Vice President — Institutional Desk, Menacorp.

Investors took more risky bets in equities after the US Federal Reserve restrained from raising rates for the sixth meeting in a row.

In Dubai, Emaar Properties and Dubai Islamic Bank were major gainers. Emaar Properties, which was the most active stock in trade, closed 2.87 per cent higher at Dh7.16. Dubai Islamic Bank closed 2.46 per cent higher at Dh5.42, Among other stocks, Arabtec closed more than 2 per cent higher at Dh1.50. Gulf Finance House closed 0.99 per cent higher at Dh1.02. Dubai Parks and Resorts closed 1.86 per cent higher at Dh1.64. Emaar Malls closed more than 3 per cent higher at Dh2.83. Out of a total of 34 stocks traded on the exchange, shares of 27 firms rose, while other 5 fell. The rest remained steady. The Abu Dhabi Securities Exchange General Index closed 1 per cent higher at 4,515.17.

Eshraq Properties closed 1.27 per cent higher at Dh0.80. Dana Gas closed more than 1.5 per cent lower at Dh0.58. Aldar gained more than 3 per cent at Dh2.72.

Rak Properties closed more than 1 per cent at Dh0.61.

Out of a total of 27 stocks traded on the exchange, shares of 15 firms rose, while other 5 fell. The rest remained steady.

Recovery

“We would have to see what happens in the US over the weekend. We would be also following the oil prices, which should be heading towards $50 (Dh183.50), so our markets should recover,” said Waheed.

Dubai index could witness strong resistance at 3,600, a level from which it has been coming down since the last couple of months, Waheed added. Dubai index has been the best performing gauge in the region with 11.5 per cent gains so far in the year. Abu Dhabi index has gained 4.83 per cent since January 1,

Elsewhere in the Gulf on Thursday, Qatar exchange index closed 1.56 per cent higher at 10,412.50, while Muscat Securities MSM 30 index closed 0.28 per cent higher at 5,766.14. Kuwait Stock Exchange index closed 0.28 per cent higher at 5,405.80. Saudi Arabian stock market was shut for a holiday.

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