Business | Markets
Solid growth of blue-chip firms boosts UAE stocks
With the blue-chip companies continuing to post solid growth in their second quarter earnings, Dubai stocks posted strong gains yesterday, extending its rally for the fourth straight day. The market has gained 4.40 per cent since Sunday.
- By Gaurav Ghose, Financial Features Editor
- Published: 00:03 July 24, 2008
Dubai: With the blue-chip companies continuing to post solid growth in their second quarter earnings, Dubai stocks posted strong gains yesterday, extending its rally for the fourth straight day. The market has gained 4.40 per cent since Sunday.
But it was more than just the good corporate results that galvanised the investors. "It is a combination of good corporate results and attractive prices that have encouraged investors to start buying," said Sharif Abdul Khalek, manager of institutional accounts at Beltone Financial Securities.
"Most of the buying was by local institutions and they were buying the leading stocks such as Emaar, DIC [Dubai Investments Company], Dubai Islamic Bank, Amlak, Tamweel."
Led by Emaar Properties, which surged 5.47 per cent to Dh10.60 - its biggest one-day gain since February 20 - the benchmark Dubai Financial Market General Index rose 3.02 over Tuesday to close at 5457.15. It was the biggest one-day gain for the index since February 3. Volumes traded rose 217.37 per cent from 169.15 million shares to 536.83 million, with the turnover totalling Dh2.06 billion.
"Emaar's performance may not be as good as other companies, but it was not bad," Khalek said.
"Most of the analysts are looking at it long term. They are looking ahead at Emaar's last quarter of 2008 and 2009 figures, which will show an improvement in the balance sheet, with profits coming from outside the UAE."
Dubai International Capital rose 6.18 per cent to Dh3.95.
Emirates NBD closed 0.84 lower at Dh11.80.
Abu Dhabi Securities Exchange gained 0.70 per cent to end at 4984.87. Real estate stocks pushed higher with Aldar Properties, Sorouh Real Estate and Rak Properties registering 5.02 per cent, 3.24 per cent and 3.16 per cent respectively. Energy stocks reversed losses, adding 2.45 per cent to the overall index.
Dana Gas gained 2.22 per cent to close at Dh1.84, Abu Dhabi National Energy was up 3.11 per cent at Dh2.98 and Aabar Investments advanced 1.10 per cent to close at Dh4.61.
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