Business | Markets
Bullish sentiment could boost UAE stocks this week
Volatility persisted in UAE stocks in the past week as initial gains were interrupted by a sharp fall following Wednesday's debacle in international markets
- By Ahmed A. Elewa, Staff Reporter
- Published: 23:16 February 8, 2008
Abu Dhabi: Volatility persisted in UAE stocks in the past week as initial gains were interrupted by a sharp fall following Wednesday's debacle in international markets.
Nevertheless, the markets ended the week in positive territory, accumulating more than Dh30 billion in capital gains. This was a reflection of the strong fundamentals, and points to a bullish trend this week.
The return of liquidity lifted up the value of traded shares by more than 37 per cent compared to the previous week.
In Dubai, the general index retrieved 2.9 per cent to end the week at 5,777.92, reducing its losses since the beginning of the year to 2.4 per cent.
The general index of the Abu Dhabi Securities Market (ADSM) shot up by 4.5 per cent, increasing its 2008 gains to 4.9 per cent.
The strong performance of the telecommunication, banking, real estate, and energy sectors had a positive effect on the markets, though Dubai Financial Market (DFM) suffered from Emaar Properties' inconsistent performance, according to the weekly report of Amanah Capital.
In the telecommunication sector, etisalat surged by 5.3 per cent to Dh24.85 adding Dh6.2 billion to its market value, while du shot up by 17.2 per cent to close at Dh6.54, increasing its market capitalisation by Dh3.8 billion.
First Gulf Bank reported the strongest performance in the banking sector, surging by 11 per cent to Dh24.75.
The real estate sector followed, advancing by 4.3 per cent on account of healthy gains for all the leading developers, especially Sorouh Real Estate which leaped 12.7 per cent to Dh9.20, approaching its all-time record high of Dh9.40.
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