Dubai index on gaining streak, volumes cross Dh1 billion

The Dubai index jumped more than 1.5%, while Abu Dhabi index ended 0.13%

Published: 18:30 April 7, 2015

By Siddesh Suresh Mayenkar, Staff Reporte

Dubai: Dubai index continued its gaining streak for a seventh straight session on Tuesday, helped by overnight rebound in crude oil prices. Saudi’s Tadawul index also rose.

The Dubai Financial Market General Index ended 1.80 per cent higher at 3,777.45, after gaining more than 7 per cent in the previous six sessions.

“The positive sentiment came due to stronger oil prices. And we would be going into first quarter results season, so investors would eye the performance of companies for further leads,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group. “There are expectations of a slowdown for growth this year,” said Khokhar.

Gulf Finance House rose more than 8.55 per cent to be at Dh0.254, while Damac Properties extended gains to end 0.39 per cent higher at Dh2.59.

“GFH has been a very active stock for the past couple of sessions and it’s mainly a retail play,” said Hisham Khairy, head of institutional trading, MENACORP, a UAE-based brokerage.

Construction major Arabtec ended 3.17 per cent higher at Dh2.60. Emaar Properties, which has the highest weightage on the index, ended 0.55 per cent higher at Dh7.25.

Out of a total of 33 stocks traded on the exchange, shares of 27 companies rose, while shares of 4 companies fell.

“We may have some profit-taking in the next couple of days after days of gains,” Khairy said.

Volumes cross Dh1 billion

Volumes zoomed to Dh1 billion on Tuesday compared to Dh600 million on Monday as institutional investors came back to the market post a dismal performance in the first quarter.

“Everything is pointing out to a better performance in coming quarters and retail and institutional players are positioning accordingly. If we continue with our stable performance then more and more institutions would start playing in the market,” Khairy said.

For most part of the first quarter, the volumes moved in a narrow range between Dh300-500 million as most of the investors preferred to sit on the sidelines waiting for volatility in crude oil prices to ebb.

Abu Dhabi Securities Exchange General Index ended 0.13 per cent higher at 4,559.71.

First Gulf Bank ended 0.33 per cent lower at Dh14.9, while Aldar Properties ended at Dh2.59, up more than 2 per cent. Eshraq Properties ended 1.33 per cent higher at Dh0.76.

Out of a total of 28 companies traded on the exchange, shares of 14 companies rose, while shares of other 8 companies fell.

Elsewhere in the Gulf, the Saudi Tadawul All Share index (Tasi) ended 1.98 per cent higher at 8,789.30, while Qatar Exchange Index ended 0.87 per cent higher at Dh11,833.83. Bahrain Bourse All Share Index ended 0.20 per cent lower at 1,438.46.

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