Dubai: Dubai’s benchmark measure DFM General Index rose 1.96 per cent to 3,443.76 points on Wednesday after some recent bouts of profit-taking, led by insurance and real estate shares.
The Fed is expected to release the minutes of its December policy meeting and the US jobs data late last night [Wednesday night] which are expected to be positive and this fuelled rally in stock markets across the world.
“I believe the UAE market had over reacted on announcement of new margin lending rules. The new rules are actually positive for the market in the long-term but may lead to more volatility in the short-term,” Vijay Harpalani, assistant fund manager at Al Mal Capital, told Gulf News.
Among the gainers, Al Salam Sudan rose by 14.98 per cent to Dh2.38, followed by National Industries Group by 11.70 per cent to Dh5.25 and Deyaar by 10.20 per cent to Dh1.08. Deyaar shares hit the highest price in more than five years on growing investor confidence on an improved outlook for the real estate sector.
The shares has surged 6.9 per cent this year after rising 180 per cent last year.
One reason behind real estate shares in Dubai getting a boost yesterday was the head of the Dubai Land Department’s saying the emirate plans new rules to control speculation on properties sold before they are built after home prices climbed by more than 30 per cent last year.
“The real estate authority plans to complete a review of what are known as off-plan transactions in the first quarter and may introduce new regulations in the second or third quarter,” Sultan Bin Mejren, Director General of Dubai Land Department, said in an interview to Bloomberg.
Home prices this year may rise 35 per cent to 40 per cent, he said.
“I am not sure if potential review of regulations on off-plan transactions has boosted real estate and insurance today [Wednesday]. Any review of off-plan transactions is likely to be positive for the real estate market in the long-term as it restricts speculative buyers, and brings more balance to the market,” Harpalani said.
Hits Telecom fell by 1.74 per cent to Dh0.901, followed by Al Salam Bank- Bahrain by 1.28 per cent to Dh1.54 and DP World by 0.68 per cent to $17.50.
Of the 32 companies traded, 27 rose, four fell and one remained steady.
About 814.12 million shares worth Dh1.09 billion were traded.
Union Properties was the active volume and value leader.
The Securities and Commodities Authority (SCA) has announced that Sunday will be a holiday for the financial markets to mark the Prophet Mohammad’s (PBUH) birthday. Trading will resume the next day, January 13, the SCA said in a statement.
In Abu Dhabi, energy shares lifted the index to close at 4395.78 points, up by 0.03 per cent.
Among the gainers, Invest Bank rose by 11.15 per cent to Dh2.89, followed by Dana Gas by 8.14 per cent to Dh0.93 and Finance House by 6.67 per cent to Dh4.
Green Crescent Insurance Company suffered the worst by 10 per cent to Dh1.17, followed by Rapco by 10 per cent to Dh1.62 and Sharjah Cement and Industrial Development by 7.75 per cent to Dh1.31.
Of the 44 companies traded, 19 rose, 20 declined and five closed unchanged.
About 511.87 million shares worth Dh938.21 million were traded.
Esharaq was the active value and volume leader.
