UAE shares lead GCC markets, boosted by Julphar, reopening of Suez Canal

The UAE shares on Monday led the GCC market gains, thanks to big jump in shares of Abu Dhabi-listed pharmaceutical firm Julphar and the reopening of Suez Canal.

Abu Dhabi Securities Exchange (ADX) gained for the second consecutive day, rising 1.17 per cent, while Dubai Financial Market rose 2.1 per cent on Monday.

ADX gains were driven by the Ras Al Khaimah-based Julphar, rising to the maximum 14.4 per cent limit at close on Monday, after it announced an agreement to produce China’s Covid-19 vaccine Sinopharm. Its counter saw 108,000 shares exchanging hands in five trades worth Dh154,440. Its share closed at Dh1.43.

Gulf Pharmaceutical Industries, also known as Julphar, said in a statement on Monday that it has signed an agreement with G42 Medications Trading LCC to produce Covid-19 vaccines from Sinopharm.

The company said in its financial statement that it will continue to focus on building new alliances and partnerships to strengthen the company’s revenues growth and expand its distribution footprint.

The news of progress with regarding to reopening of Suez Canal after grounding of a ship also sent a positive vibe among the regional investors that help the rally.

In addition, the reopening of different sectors of economy is also giving optimism to the markets with analysts expecting recovery is well on its course now.

“There is renewed hope in the GCC market as several industries are beginning to trend up. This is excellent news as the market took a bit of a hit last week, and performances were a bit lacklustre,” said Daniel Takieddine, market analyst at FxPrimus.

Analysts expect that the markets will more likely to sustain the rise and see less volatility amidst increase in vaccine drive in the region, especially in the UAE.

In Abu Dhabi, Arkan, Abu Dhabi Aviation, Adnoc Distribution and International Holding Company were the top gainers. While in Dubai, Emirates NBD gained 2.7 per cent while property developer Emaar Properties climbed 2.9 per cent higher.

Among other regional bourses, the Qatari index closed 1.3 per cent higher, as most of the stocks on the index traded in positive territory including petrochemical maker Industries Qatar.

Saudi Arabia’s Tadawul Index rose 1.4 per cent to 9,616; Bahraini bourse dropped one per cent to 1,458; Oman lost 0.5 per cent to 3,684; and Kuwait index eased 0.3 per cent.