DFM closes up for fifth day, ADSE dips

Dubai: The Dubai benchmark closed up, extending its gains to five straight days, but the Abu Dhabi index ended lower as the bourses headed into a holiday break starting on Tuesday.

The markets will reopen on December 14.

The Dubai Financial Market General Index climbed 0.52 per cent to close at 1,974.90, taking its five-day gain to almost 9 per cent. The Abu Dhabi Securities Exchange Index shed 0.77 per cent to end at 2,754.48.

"Everything is a good buy now," said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage. "And some investors realise that this is the time to buy, especially for those who have cash. Some hedge funds are now eyeing the markets here as they consider the UAE to be a cheap buy compared to other emerging equity markets."

Dubai's benchmark index is valued at 4.7 times the earnings of its 29 companies, according to data compiled by Bloomberg, compared with a high of 23.92 reached in January. Abu Dhabi's index is trading at 6.8 times earnings, compared with around 17 times in January.

On the DFM, Emaar Properties rose 1.71 per cent to Dh2.98 and Deyaar Development gained 2.82 per cent to Dh0.73.

Meanwhile, on the ADX, Aldar Properties and Sorouh Real Estate were given a "buy" rating in the latest report by Citigroup. Sooruh remained unchanged at Dh3.40, whereas Aldar fell 1.64 per cent to Dh5.40.

Aabar Investments surged 6.25 per cent to Dh2.04, after it agreed to buy the private banking division of American International Group, the insurer that was bailed out by the US government, for 307 million Swiss francs (Dh930 million). "It's a bold move amid troubled water and so we have to wait and see how it works out," Jayabhanu said.

- With inputs from Bloomberg