Abu Dhabi: The Dubai Financial Market (DFM) bounced back on Tuesday with high trade values of Dh2.85 billion — a significant rise compared to the last few sessions when values were below Dh1 billion.

The DFM index rose 3.36 per cent to end the day’s trade at 4,765.64 on the back of a 13.55 per cent increase by construction giant, Arabtec. With a trade value of Dh1.46 billion, Arabtec alone accounted for 51 per cent of the total trade on DFM.

Shares for the Dubai powerhouse started the day at a price of Dh4.35, and inclined steadily throughout the day to reach a high of Dh4.89 at 1.15pm. This was followed by a slight drop that saw shares end the day at a price of Dh4.86.

In the past two trading sessions, Arabtec share prices went up by 1.89 per cent only.

Most powerhouses in Dubai also registered gains on Tuesday. Deyaar Developments rose 12.17 per cent, Union Properties gained 5.18 per cent, Dubai Investment Co went up 3.31 per cent, Emaar grew 1.78 per cent, and Gulf Finance House inclined 0.71 per cent.

 

Abu Dhabi

Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index went up 0.27 per cent to reach 4,927.62.

Despite the high trade value on DFM, Analyst Osama Al Ashry said that the market remains in a high-risk level, and attributed the growth on DFM to a rebound.

“Around Dh2 billion out of the total Dh2.8 billion came from Arabtec, Union Properties, and Emaar, so without them, the DFM would still have low trade values. It’s never a healthy sign for the index to move only because of the movement of a couple of stocks,” he said.

Al Ashry explained that there was no news coming out of Arabtec, or DFM to justify the sudden influx of liquidity.

“We noticed a lot of cash entering the market, and this appears to be due to certain major players controlling the market; it’s not the long-term investors who are putting that much liquidity and causing the Dh2.8 billion trade value,” said Al Ashry, a member of British organisation, Society of Technical Analysts.

He added that the DFM index needs to reach a resistance level of 5,271 in order to be on the safe side, and that Arabtec has a resistance level of Dh5 to Dh5.49, which is hard to reach. He expected the week to end in the red.

As for ADX, the analyst said, “Abu Dhabi maintained weak values of trade, which proves even further that the trade on DFM isn’t realistic because it is relying on a few stocks.”

Of the 32 stocks traded on DFM, 21 went up, seven went down, and four remained unchanged. Of the 31 stocks traded on ADX, 18 advanced, nine declined, and four remained flat.