Dubai: Stocks listed on the Dubai Financial Market (DFM) rallied Tuesday on the news that Emiratis will now be able to own industrial and commercial properties in Dubai which the market saw as a strong domestic catalyst and shares of realty companies surged.
The construction activities in Dubai will likely increase as property ownership is going to create new demand. Real estate major Emaar led the gains on the Dubai market yesterday, its stock closing 4.68 per cent higher at Dh3.80.
Other heavily-traded company stocks such as DFM, Arabtec, Deyaar and Union Properties, rose as well.
Index rise
The DFM index rose 2.06 per cent to 1,758.17 yesterday as greater numbers of investors returned to the market. As many as 601.66 million shares worth Dh970.28 million were traded on the Dubai market, which was substantially higher than Monday.
"It looks to be a short-term rally in Dubai. However, it seems there's something positive happening with regard to Dubai World's debt restructuring talks with its lenders," Mousa Haddad, Head Trader, National Bank of Abu Dhabi Asset Management, told Gulf News.
‘The market has the potential near-term to trade between 1,850 to 1,950 levels," he added.
The Dubai market also got a boost yesterday from euro zone countries pledging their support to Greece, which many fear could default on its sovereign debt obligations.
