Property, bank stocks power Dubai index to 1-month high
With Monday’s jump, Dubai index equals YTD gains with Saudi’s Tadawul index, which was the best performing index in the region
Published: 17:32 July 20, 2015
By Siddesh Suresh Mayenkar, Staff Reporte
Ahead of the second quarter results, property and bank stocks powered Dubai index to its highest level in a month. The Abu Dhabi index also edge higher at close.
The Dubai Financial Market General Index ended 2 per cent higher at 4,184.05 after hitting a high of 4,186.06, a level last seen in late June.
“People are trading on second quarter numbers. Banks and property counters are moving as they expect better than expected results. There is also good news on UPP on new contracts,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Emaar Properties, which has the highest weightage on the index, jumped 2.27 per cent to end at Dh8.10, while Damac Properties ended 2.24 per cent higher at Dh3.20.
Union Properties ended 5 per cent higher at Dh1.26, while Dubai Islamic Bank closed 2.28 per cent higher at Dh7.18.
“DIB was able to close last week above its long time resistance Dh7 with high volumes, the stock could target Dh7.30 as a first target,” Menacorp said in a report on Monday.
After posting robust numbers, Emirates NBD ended 4.21 per cent higher at Dh10.15.
Out of a total 37 stocks traded on the exchange, shares of 27 firms rose, while other 7 stocks fell.
In Abu Dhabi, the general index ended 0.29 per cent higher at 4,824.03.
ADCB ended 0.09 per cent higher at Dh7.98, while First Gulf Bank closed 0.05 per cent higher at Dh15.10. Aldar Properties ended 0.03 per cent higher at Dh2.74.
Out of a total 27 stocks traded on the exchange, shares of 15 firms rose, while shares of other 7 firms fell.
“Markets would continue to be driven by the outcome of the results. We would see the rally last until all the results are out,” said Manibhandu, adding “this rally will last for a couple of weeks before we see some profit-taking.”
Abu Dhabi Commercial Bank (ADCB), Union National Bank and National Central Cooling Company (Tabreed) results are scheduled later in the week.
With Monday’s jump, Dubai index has gained more than 14 per cent in the year so far, almost equal to Saudi’s Tadawul index, which has been the best performing regional markets so far in the year.
On Wednesday, the Tadawul index closed 0.68 per cent higher at
“I see leadership of Tadawul will be reduced over time if Dubai and Abu Dhabi comes out with good results,” Manibhandu said.
Rest of the Gulf markets were shut for Eid holidays, most of the markets would resume trade later in the week.