Rebounding oil fans risk appetite among investors in Dubai
Published: 18:03 April 7, 2016
Dubai: The Dubai index jumped over a per cent on Thursday as rebounding oil fanned risk appetite among traders, who chased small cap stocks.
The Dubai Financial Market General index closed 1.04 per cent higher at 3,386.14.
“Market is just following stability in oil and global markets on Wednesday. The index is still trading at the 3,400 resistance level and hasn’t taken any direction as yet,” Hisham Khairy, Head of Institutional Trading, Menacorp told Gulf News, adding “small caps continues to outperform the market.”
Among stock specific action, Gulf Finance House ended 1.43 per cent higher at Dh0.854, while Drake and Scull ended 11.1 per cent higher at Dh0.0.610. Union Properties closed nearly 1 per cent higher at Dh0.892. Arabtec ended half a per cent higher at Dh1.73. Out of a total of 35 stocks traded on the exchange, shares of 28 firms rose, while other 5 fell.
Abu Dhabi Securities Exchange general index closed 1.22 per cent higher at 4,351.70. Aldar Properties closed more than 1,5 per cent higher at Dh 2.76. Dana Gas closed also ended more than half a per cent higher at Dh0.54. Taqa shares ended more than 3 per cent lower at Dh0.52. Out of a total of 29 stocks traded on the exchange, shares of 14 firms rose, while other 6 firms fell.
Volumes rebounded to more than Dh700 million compared to less than Dh500 million a few days ago. “Volumes are pretty good, and are very high on the upside and very low on the downside,” Khairy said.
Going ahead, analysts said that traders would keenly watch the 3,400 level.
“If global markets remain the same, we can continue going higher,” Khairy said, adding “3,400 level is still dominating trading in the market, and people are waiting for the Dubai index to breach that level.”
Elsewhere in the Gulf, Saudi Arabia’s Tadawul Tasi index closed 0.72 per cent higher at 6,258.11, while Qatar exchange index closed 1.33 per cent higher at 10,614.76.