Abu Dhabi: The Dubai Financial Market (DFM) index returned to the positive territory yesterday on high volumes on the back of higher international oil prices and improved investor confidence in the European and Asian markets which allowed market participants waiting on the sidelines to lap up some of the attractively-valued stocks.
Yesterday, the Dubai market witnessed some aggressive buying by investors in real estate major Emaar and DP World stocks. However, selling by investors in Arabtec’s stock pared the index’s gains.
The DFM index closed at 1,591.62 on low volumes with 1,600 seen as the next resistance level. Analysts say a close above 1,600 on high volumes would indicate greater upside movements on the market in the days ahead. Around 168.65 million shares, cumulatively worth about Dh328.25 million were traded on the Dubai stock market yesterday. As many as 10.69 million Emaar shares, cumulatively valued at around Dh38.2 million were traded, its stock closing 0.56 per cent higher at Dh3.58.
Of the 31 company stocks traded yesterday, 13 rose, while 13 fell and 5 closed unchanged. The day’s top gainer was AlMadina, its stock rising 9.54 per cent to close at Dh0.884. Mazaya was the day’s main loser, its shares fell 9.99 per cent to close at Dh0.703. The shares of CBD were the most traded by value and volume.
The Abu Dhabi Securities Exchange (ADX) general index rose fractionally yesterday as global oil prices firmed up and investors on the world financial markets became more optimistic towards buying into riskier assets such as stocks. However, the market lacked a local catalyst which pared the index’s gains.
At close, the ADX general index stood well above the psychological level of 2,600, giving an indication that if the global sentiments improve in the near term, the market has the ability to rally as it’s backed by solid fundamentals of the listed blue-chip companies.
Yesterday, investors bought real estate, energy and telecommunication stocks while selling shares in the banks.
The ADX general index closed at 2,606.23 as major investors kept on the sidelines, even though the volume and the value of shares traded on the market picked up substantially. Around 38.49 million shares, cumulatively valued at about Dh53.97 million were traded. Of the 29 company stocks traded, 9 advanced, while 10 fell and 10 closed unchanged.
The stock of Abu Dhabi’s real estate major Aldar Properties closed unchanged at Dh1.27. About 6.08 million shares of Aldar, cumulatively worth about Dh7.68 million changed hands on the market. Sorouh Real Estate’s shares though, rose, by 0.84 per cent.
The top gainer on the Abu Dhabi market yesterday was Watania, its shares closing 10 per cent higher at Dh0.99. Ras Al Khaimah White Cement was the day’s top loser, its stock falling 9.93 per cent to close at Dh1.27. The shares of telecommunications major Etisalat were the most traded in terms of value while energy company Dana Gas’ stock was the most traded by volume.
