Local stocks rally after a week of decline

Dubai: After seven straight days of decline, UAE shares witnessed a much needed relief rally on Monday.

Dubai Financial Market General Index soared 8.15 per cent to close at 2,142.85 with the much battered real estate stocks surging. The real estate index jumped 14.76 per cent and the finance-investment sector climbed 10.41 per cent. Emaar Properties, the largest property developer in the Middle East, was the top gainer closing 14.98 per cent higher to Dh3.30. Other stocks which advanced included Union Properties, up 14.16 per cent, Deyaar Development, gaining 14.08 per cent, Arabtec Construction, rising 14.95 per cent and Amlak Finance and Tamweel, adding 14.85 per cent and 14.56 per cent respectively.

"The rebound had to happen," said Chahir Hosni, director of high net worth sales, EFG-Hermes Holding. "The decline was very sharp and very steep, so the rebound was also expected to be strong."

P. Krishna Murthy, CEO of Dubai International Securities, a division of Al Rostamani Financial Services, agreed.

"When a market falls so steeply for these many days, a recovery is expected," he said.