Business | Markets
Foreign funds prop up UAE shares for a second consecutive day
The return of foreign funds to the UAE markets continued to influence the trading, pushing share prices up for a second consecutive day.
- By Ahmed A. Elewa, Staff Reporter
- Published: 23:45 September 25, 2007
Abu Dhabi: The return of foreign funds to the UAE markets continued to influence the trading, pushing share prices up for a second consecutive day.
The Emirates Securities general index gained 0.59 per cent to 4,418.74, while the market capitalisation of the listed companies increased by Dh3.5 billion.
In Dubai, the benchmark index gained 0.84 per cent to close at 4,267.20 on relatively high volumes and values, with the strong rally on Air Arabia's shares continuing. More than Dh692 million worth of the budget carrier's shares changed hands, accounting for more than 50 per cent of the market's total of Dh1.37 billion.
The leading share, Emaar Properties, rose 0.93 per cent to close at Dh10.85, while its financial arm, Amlak Finance, surged to Dh1.58, recovering 3.22 per cent of its earlier heavy losses, on account of the company's application for a five per cent share buy-back, which was approved yesterday by the market regulator.
All the sub-indices ended the session in the black, with the exception of the materials sector that fell by 4.93 per cent on account of the heavy losses recorded by National Cement, and the consumer sub-index which was unchanged by the close.
In Abu Dhabi, the strong rally on the real estate sector continued, led by Aldar Properties, which continued its gains adding more than one per cent to its value to close at Dh7.47, with many analysts attributing the uptrend to the positive evaluations published recently by several financial powerhouses, in addition to the strong foreign interest in the Abu Dhabi based developer.
The energy sector was positively affected by National Abu Dhabi Energy Company's (Taqa) acquisition of Canadian Prime West Energy Trust. Taqa advanced by more than one per cent to close at Dh2.81, while the energy sub-index added 0.44 per cent to its value.
Arab stocks
Stocks in Saudi Arabia rose after the kingdom allowed citizens of the Gulf countries to buy and sell shares without restrictions.
The Tadawul All Share Index gained 0.6 per cent to 7,910 at the close in Riyadh. The measure has dropped 0.3 per cent so far this year.
Al-Rajhi Bank, the country's biggest publicly traded lender by market value, advanced 2.4 per cent to 85.25 riyals. Samba Financial Group, the second-biggest, climbed one per cent to 121.25 riyals.
Of the seven benchmarks in the Gulf markets tracked by Bloomberg News, only Kuwait's gauge was little changed, gaining less than 0.1 per cent.
The Doha Securities Market Index increased 0.2 per cent, while Oman's Muscat Securities Market 30 Index gained one per cent. Bahrain All Share Index advanced 0.2 per cent.
Agility lost 1.1 per cent to 1,820 fils. The largest storage and logistics company in the Middle East signed an initial agreement to buy a stake in Korek Telecom of Iraq. Arabian Pipes gained 1.1 per cent to 67.25 riyals.
Regulations: Esca issues warning to brokerage firms
The Emirates Securities and Commodities Authority (Esca) extended a final reminder yesterday to brokerage firms to abide by the deadline which expires by the end of September to adapt to the new requirements as per the authority's decree No 176 for 2006.
The decree increases the required paid-up capital from Dh10 million to Dh30 million as well as the bank guarantee from Dh10 million to Dh20 million. The decree also requires brokerage firms to employ only qualified staff.
Esca extended a final warning that strong disciplinary measures will be taken against the brokerage firms that stay in violation by the end of September.
- Staff Report
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