Dubai index surges to highest in five months

Dubai: Shares in Dubai hit a five-month high yesterday on growing optimism over the health of both the local and global economy.

The Dubai Financial Market (DFM) General Index gained 0.64 per cent to 1,476.24, its highest close since September 8, 2011 as local investors returned to the exchange en masse.

The DFM lost 17 per cent last year after being buffeted by a series of micro and macro-economic headwinds.

However, the bourse is up nine per cent in 2012 as local firms report solid full-year earnings and fears abate over the crisis in the Eurozone.

Local participation

"We are seeing a rally building up across all emerging markets and the UAE has been a beneficiary of the increased buying activity," said Sachin Mohindra, fund manager at Invest AD.

"The main reason for increased volumes is intense local participation; nobody wants to be left out when a rally is building up," he added.