06 October 2009
Dubai Financial Market's (DFM) general index breached the critical 2200-point mark in yesterday's trading and touched the year's high of 2236.50, as banking and realty stocks led the rally in equities.
The DFM index added 44.19 points, or 2.02 per cent, over its previous close of 2129.31 points to close at 2236.50. This is its highest closing year-to-date and the highest since November 11, 2008, when it touched 2343.15 points.
Except the materials index, all other sub-indexes of the bourse closed higher on fresh buying support from all corners.
Nour Al Zoubi, General Manager at MAC Sharaf Securities, said: "When the index crossed the 2200 mark, which is a key technical indicator for buying, it got a further boost as this level prompted fresh support from market players."
The DFM index hovered below the 2000-point mark from June 18 until September 9, picking up steam during Ramadan trading.
Shiv Prakash, technical analyst at MAC Capital, said: "The DFM general index has clearly broken the sideways range and the strong resistance levels of 2210 points. It closed higher at 2236 with an increase in volumes. We expect a further rise until 2330/2500 points in the coming sessions. Those holding buy positions in the market should use 2150 as the stop level now."
With an encouraging 3.09 per cent gain, the real estate sub index led all the sub-indexes. The finance and investment index rose 2.83 per cent, the banking index 0.95 per cent, the transport index 1.92 per cent, telecommunication 2.69 per cent, utilities three per cent and the insurance index closed a marginal 0.45 per cent higher. The materials index closed 4.52 per cent lower as National Cement shares shed 4.52 per cent and closed at Dh3.38.
"International markets were not bad yesterday and good news on every front infused fresh buying interest into the market," said Al Zoubi of MAC Sharaf Securities.
"If something adverse emerges on global markets tomorrow, the local markets will again feel the pressure and profit booking will take place. Foreign investors are active in the market. Cautiousness is advised about the present scenario as it's difficult to predict the future direction," he said.
Among banking shares, the Gulf Finance House (GFH) stock went 9.97 per cent lower to close at Dh3.07. Emirates NBD added 0.91 per cent and closed at Dh4.44; Dubai Islamic Bank (DIB) shares rose 1.94 per cent to finish at Dh3.15; Al Salam Sudan moved up 0.71 per cent and closed at Dh2.83; and Ajman Bank gained 1.72 per cent to close at Dh1.18.
Telecom major, du, moved up 2.69 per cent and closed at Dh3.43. The Arabtec stock was active, too, and rose 4.18 per cent as news about its foundation tests on a Russian tower project for Gazprom attracted investors. Emaar added 2.72 per cent.
Ian Munro, Head of Research at MAC Capital Advisors, said: "The Ventures Middle East figures say a total of 213 building and infrastructure contracts valued at Dh92.9 billion were awarded from January to September 2009, down 59 per cent year-on-year.
"This still represents signs of life in new project growth. Management consultant AT Kearney has highlighted an untapped revenue opportunity of $30bn (Dh110bn) in ancillary fees around the GCC [$5bn-$10bn in the UAE] for property developers moving from a sales business model to a more diverse model incorporating sales, facilities management, and property services. This data is consistent with recent moves by Aldar and Emaar to diversify their business models into investment property and services and is also very supportive of the model built by Nasdaq Dubai-listed Depa," said Munro.
The finance and investment stocks performed encouragingly on the bourse. Al Firdous' stock rose 4.72 per cent and closed at Dh1.11; Al Madina shares added 7.51 per cent to close at Dh6.01; the DFM stock added 4.20 per cent to close at Dh2.48; and Dubai Investment shares moved up 2.14 per cent to end at Dh1.43. Shuaa Capital closed 0.50 per cent up at Dh2.02.
Global Investment House shares added 6.98 per cent and closed at Dh1.84, while Ekittitab and GGICO stocks moved up by more than two per cent.
"If the market remains above the pivot levels of 2222 points, we can see it going higher until the 2252/2267 resistance levels. Profit booking can be seen if it breaks below 2222 points until the 2206/2176 support levels," said Shiv Prakash.
Emaar, DFM and Arabtec steal the show
Trading turnover on Dubai's bourse more than doubled to cross the Dh1 bilion mark yesterday, recording a total of Dh1.36bn - a 147 per cent rise from Sunday's turnover of Dh551.57bn.
Three stocks accounted for more than 58 per cent of the total turnover on the Dubai stock exchange: Emaar rose 2.72 per cent and closed at Dh4.16; DFM added 4.20 per cent to close at Dh2.48 and Arabtec gained 4.18 per cent, closing at Dh3.49.
Emaar recorded a turnover of Dh293.29 million, DFM Dh267.90m and Arabtec Dh155.50m.
The other major value pushers on Dubai Financial Market were Deyaar, which recorded Dh115.40m, and DSI, the Dubai-based real estate major, with Dh82.13m.
Dubai Financial Market's (DFM) general index breached the critical 2200-point mark in yesterday's trading and touched the year's high of 2236.50, as banking and realty stocks led the rally in equities.
The DFM index added 44.19 points, or 2.02 per cent, over its previous close of 2129.31 points to close at 2236.50. This is its highest closing year-to-date and the highest since November 11, 2008, when it touched 2343.15 points.
Except the materials index, all other sub-indexes of the bourse closed higher on fresh buying support from all corners.
Nour Al Zoubi, General Manager at MAC Sharaf Securities, said: "When the index crossed the 2200 mark, which is a key technical indicator for buying, it got a further boost as this level prompted fresh support from market players."
The DFM index hovered below the 2000-point mark from June 18 until September 9, picking up steam during Ramadan trading.
Shiv Prakash, technical analyst at MAC Capital, said: "The DFM general index has clearly broken the sideways range and the strong resistance levels of 2210 points. It closed higher at 2236 with an increase in volumes. We expect a further rise until 2330/2500 points in the coming sessions. Those holding buy positions in the market should use 2150 as the stop level now."
With an encouraging 3.09 per cent gain, the real estate sub index led all the sub-indexes. The finance and investment index rose 2.83 per cent, the banking index 0.95 per cent, the transport index 1.92 per cent, telecommunication 2.69 per cent, utilities three per cent and the insurance index closed a marginal 0.45 per cent higher. The materials index closed 4.52 per cent lower as National Cement shares shed 4.52 per cent and closed at Dh3.38.
"International markets were not bad yesterday and good news on every front infused fresh buying interest into the market," said Al Zoubi of MAC Sharaf Securities.
"If something adverse emerges on global markets tomorrow, the local markets will again feel the pressure and profit booking will take place. Foreign investors are active in the market. Cautiousness is advised about the present scenario as it's difficult to predict the future direction," he said.
Among banking shares, the Gulf Finance House (GFH) stock went 9.97 per cent lower to close at Dh3.07. Emirates NBD added 0.91 per cent and closed at Dh4.44; Dubai Islamic Bank (DIB) shares rose 1.94 per cent to finish at Dh3.15; Al Salam Sudan moved up 0.71 per cent and closed at Dh2.83; and Ajman Bank gained 1.72 per cent to close at Dh1.18.
Telecom major, du, moved up 2.69 per cent and closed at Dh3.43. The Arabtec stock was active, too, and rose 4.18 per cent as news about its foundation tests on a Russian tower project for Gazprom attracted investors. Emaar added 2.72 per cent.
Ian Munro, Head of Research at MAC Capital Advisors, said: "The Ventures Middle East figures say a total of 213 building and infrastructure contracts valued at Dh92.9 billion were awarded from January to September 2009, down 59 per cent year-on-year.
"This still represents signs of life in new project growth. Management consultant AT Kearney has highlighted an untapped revenue opportunity of $30bn (Dh110bn) in ancillary fees around the GCC [$5bn-$10bn in the UAE] for property developers moving from a sales business model to a more diverse model incorporating sales, facilities management, and property services. This data is consistent with recent moves by Aldar and Emaar to diversify their business models into investment property and services and is also very supportive of the model built by Nasdaq Dubai-listed Depa," said Munro.
The finance and investment stocks performed encouragingly on the bourse. Al Firdous' stock rose 4.72 per cent and closed at Dh1.11; Al Madina shares added 7.51 per cent to close at Dh6.01; the DFM stock added 4.20 per cent to close at Dh2.48; and Dubai Investment shares moved up 2.14 per cent to end at Dh1.43. Shuaa Capital closed 0.50 per cent up at Dh2.02.
Global Investment House shares added 6.98 per cent and closed at Dh1.84, while Ekittitab and GGICO stocks moved up by more than two per cent.
"If the market remains above the pivot levels of 2222 points, we can see it going higher until the 2252/2267 resistance levels. Profit booking can be seen if it breaks below 2222 points until the 2206/2176 support levels," said Shiv Prakash.
Emaar, DFM and Arabtec steal the show
Trading turnover on Dubai's bourse more than doubled to cross the Dh1 bilion mark yesterday, recording a total of Dh1.36bn - a 147 per cent rise from Sunday's turnover of Dh551.57bn.
Three stocks accounted for more than 58 per cent of the total turnover on the Dubai stock exchange: Emaar rose 2.72 per cent and closed at Dh4.16; DFM added 4.20 per cent to close at Dh2.48 and Arabtec gained 4.18 per cent, closing at Dh3.49.
Emaar recorded a turnover of Dh293.29 million, DFM Dh267.90m and Arabtec Dh155.50m.
The other major value pushers on Dubai Financial Market were Deyaar, which recorded Dh115.40m, and DSI, the Dubai-based real estate major, with Dh82.13m.
By Sreenivasa Rao Dasari
© Emirates Business 24/7 2009
