Sunday, Oct 20, 2013
Abu Dhabi
The Dubai Financial Market (DFM), re-opening after the Eid holidays, rallied on Sunday with its benchmark index closing at its highest level since October 2 after the US staved off a potential default. Last week, the US Senate passed a bill that ended the Washington showdown over the country’s debt limit and reopened the federal government.
The DFM index closed 2.79 per cent higher at 2,909.91, the rally being in line with positive sentiments prevailing on other regional markets. Property companies led the market rally in Dubai.
In contrast, the Abu Dhabi market’s general index closed 0.31 per cent lower at 3,830.47 on profit-booking by investors.
In Dubai, 1.45 billion shares cumulatively worth nearly Dh1.66 billion were traded. Union Properties’ stock surged 8.76 per cent to close at 0.956, while Deyaar’s shares ended 5.34 per cent higher. Real estate major Emaar’s shares rose 3.02 per cent to close at Dh6.15.
Market analysts say the UAE markets are likely to move higher in the days ahead with the anticipated third quarter earnings of blue chip companies poised to lead the market surge.
“This is a bit of catch-up for Mena after global equities rallied post-US debt deal,” Julian Bruce, head of institutional trading at EFG-Hermes UAE Ltd. in Dubai told Bloomberg.
“Closer to home, there’s been a good deal of positive chatter on Cityscape and the UAE real estate market, and most punters now fully expect Dubai to secure a win for Expo 2020.”
Dubai’s measure has climbed 77 per cent this year, more than any of the 50 largest equity markets, as the Arabian Gulf business hub recovers from the credit crisis that led to a crash in property prices.
Economic growth in the emirate is set to accelerate to 4.6 per cent, on average through 2015, helped by a rebound in tourism, trade and transport, government estimates show. That’s more than twice as fast as the prior four years.
The shares are also benefiting from investor demand for real estate in the Citiscape property exhibition earlier this month and amid expectations the emirate will win the right to host the World Expo 2020.
Of the 33 company stocks traded on the Dubai market yesterday, 25 rose, while five fell and three closed unchanged. IFA was the day’s top gainer, its shares surging 11.72 per cent to close at Dh1.43. Shuaa Capital, whose stock prices fell 2.45 per cent to Dh0.917 was the day’s top gainer.
In Abu Dhabi, 341.40 million shares cumulatively worth Dh576.44 million were traded. Of the 31 company stocks that traded, 15 advanced, while 10 declined and six closed unchanged.
The stock of Abu Dhabi’s real estate major Aldar Properties rose 5.34 per cent to close at Dh2.76. Emirates Driving Company was the day’s top gainer, while Green Crescent Insurance Company was the top loser.
By Himendra Mohan Kumar Staff Reporter
Gulf News 2013. All rights reserved.
