Monday, Nov 18, 2013
Dubai: Led by the biggest stock, Emaar Properties, in Dubai and banks in Abu Dhabi, UAE markets reversed their Sunday declines to post more than one per cent gains on Monday.
Both markets have witnessed high volatility in the past few weeks in the run-up to the Expo 2020 announcement. Last week, Dubai’s index was down 2.53 per cent as investors booked profits amid what has been a strong run for the bourse this year.
Mark Mobius, executive chairman of Templeton Emerging Markets Group, still finds value in Dubai’s stock market, which has this year risen close to 74 per cent and is among the top five markets globally.
While acknowledging that such emerging markets are characterised by high volatility, Mobius told the local media during a roundtable on Monday that Franklin Templeton is still holding on to the UAE stocks that they have invested in.
“We are not selling,” he added. “There will be daily or weekly fluctuations and so forth. The weight of money is still there. There’s a lot of money out there...I don’t see any reason to be too scared about a crash — there will be corrections along the way. But as long as you can find good value, you got to stay in.”
While banks have witnessed increased price to book ratios, going up two to three times, but looking at their margins, their profitability is still good, he said. Franklin Templeton has invested in banking stocks such as National Bank of Abu Dhabi and First Gulf Bank, among others.
“I don’t see any reason to exit the banks. In real estate, of course it looks very, very good,” Mobius said.
The DFM General Index closed 1.53 per cent higher to end at 2856.19. Emaar, the most active stocks in terms of value traded, rose 1.83 per cent to Dh6.11. Others to advance included Dubai Investments, Drake and Scull International and Dubai Financial Market.
In Abu Dhabi, the measure was up 1.11 per cent to 3831.29. Aldar Properties advanced 1.61 per cent to Dh2.52; First Gulf Bank closed 1.52 per cent higher to Dh16.65 and Abu Dhabi Commercial Bank gained 1.60 per cent to Dh5.09.
By Gaurav Ghose Financial Features Editor
Gulf News 2013. All rights reserved.
