Abu Dhabi: The Dubai Financial Market (DFM) index rose 6.09 per cent on Wednesday to reach 4,253.04, while the Abu Dhabi Securities Exchange (ADX) gained 1.89 per cent to end at 4,639.41.
The growth in both markets comes after days of decline that saw the DFM index fall nearly 24 per cent, while ADX dropped around 10 per cent since the beginning of this month.
Real estate developer Arabtec bounced back after a steep plunge that saw share prices fall over nine per cent each day since the beginning of this week. On Wednesday, Arabtec share prices gained 5.13 per cent to reach a value of Dh3.28.
Arabtec denied rumours yesterday morning that it is planning to delist from DFM. A statement released by the construction giant said Arabtec has never “requested or discussed with the Securities & Commodities Authority to be delisted.”
The company started the day’s trade at a price of Dh3, and almost immediately rose to Dh3.25 in the first 15 minutes of the day. Further fluctuations throughout the day saw shares ending the day at a value of Dh3.28, as Arabtec’s trade value made up 31.6 per cent of the total trade on DFM.
Osama Al Ashri, a member of the British organisation, Society of Technical Analysts, attributed the growth in the markets to a correction.
“The DFM index has dropped from 5,200 to 3,920 from the beginning of this month till Tuesday, and such a steep drop is a first for any index, so it needed a correction. The most important factor in the plunge has been Arabtec, whose trade constituted around 40 per cent of daily trade on DFM since the start of the year,” he said.
