Dubai Stocks Hit 3-month High; Volumes Cross 200m Mark

Bulls continued to rule for the second consecutive day on the Dubai Financial Market as investors went back into the ring amid hopes the market will sustain the rally after Eid.

The DFM benchmark index on Monday rose to three-month high, supported by high volumes that crossed the 200 million mark due to increased trading activity ahead of the Eid holidays, starting tomorrow.

The DFM General Index climbed 30.79 points, or two per cent, to 1,568.88 points, its highest finish since May 31. Volumes hit a two-month high as the traders exchanged 204.06 million shares worth Dh393.38 million compared to 103.22 million shares on Sunday. Sentiments remained positive throughout the day as out of 25 shares traded on the exchange yesterday, 20 posed gains and only five declined.

Emaar Properties continued its upward trend and surged 3.14 per cent to Dh3.61 while Arabtec and Dubai Financial Market Company advanced 4.7 per cent and 5.3 per cent, respectively. This trio accounts for two-thirds of all shares traded on the benchmark.

“There is a concentration on the bluechips and high beta names like DFM, Emaar and Arabtec,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments. “Investors are interested in these stocks after they were severely over-sold going into Ramadan.”

In the aviation sector, Air Arabia gained 2.26 per cent to Dh0.82, but Aramex fell 0.57 per cent to Dh1.75.

“These gains are sustainable — we were always talking about a rush at the end of Ramadan from investors taking positions ahead of a likely rally after Eid,” Shurrab said. “International sentiment has helped us and a positive open to European markets today brought in some extra volumes to our markets.”
Property shines on ADX

The Abu Dhabi Securities Exchange’s General Index steady progress continued as the volumes crossed the 100 million mark. Property shares lifted the benchmark index, which rose 10.13 points, or 0.4 per cent, to 2,517.39 points.

Sorouh Real Estate climbed 4.35 per cent to Dh1.68 while Aldar Properties advanced 3.03 per cent to Dh2.38. RAK Properties gained 2.5 per cent to Dh0.40.

In banking sector, Abu Dhabi Commercial Bank surged 6.29 per cent to Dh1.86 while First Gulf Bank and Union National Bank dropped 0.36 per cent and 0.32 per cent, respectively.

In terms of value, Aldar Properties remained on top as its shares worth Dh51.23 million traded on the exchange. In terms of volume, Dana Gas stayed on top as its 43.27 million shares exchanged hands yesterday.