Dubai: The Dubai Financial Market (DFM) General Index hit a 16-month high on Sunday, adding 3.07 per cent to 1,754.2, amid growing confidence in the health of the local economy.
The bourse took its cue from gains on Saudi Arabia's Tadawul All Share Index, the Arab world's most liquid stock market, which extended gains into a 12th consecutive session.
"The rally on the DFM gained further strength with the help of penny stocks such as Tabreed, Gulf Navigation and Dubai Investments," said Mousa Haddad, head of the equity trading desk at the National Bank of Abu Dhabi.
Taking a breather
"All the major stocks are moving together, which shows this is not a short-term rally but a sustainable move on the upside.
"However, once we see turnover hit the Dh1 billion mark, we will see the market take a breather as investors book profits.
"The restructuring of Dubai's debt has helped boost confidence while rising trading volumes have also boosted momentum.
"We may, however, see some profit-taking around the 1,800-1,810 level," he added.
The Abu Dhabi Securities Exchange (ADX) rose for an 11th consecutive session, its longest stretch of gains since May 2007, as investors poured cash into the capital's real estate sector.
The bourse rose 0.66 per cent to 2,641.29 with Aldar Properties adding 6.78 per cent to a seven-month high of Dh1.28 after Moody's raised its outlook on the developer to positive.
"The global improvement has certainly helped improve the sentiment on Dubai's stock market, as its economy depends on external demand, including tourism and trade," Anas Al Maizi, an Abu Dhabi-based fund manager at Royal Capital, told Bloomberg.
Elsewhere in the region, Saudi Arabia's Tadawul All Share Index rose 0.21 per cent, Bahrain's bourse was little changed, Kuwait's gauge rose 0.86 per cent and Muscat's exchange closed flat.
