Dubai: Market shares in Dubai resumed their rally on Sunday after it was disrupted last week on heightened fears of a collapse of the Greek debt swap deal potentially resulting in chaos across global markets
The Dubai Financial Market (DFM) General Index gained 4.73 per cent on Sunday to close at 1,686.66, the biggest rally since December 2009. The DFM index slumped 4.82 per cent on Thursday, the most in nearly two years, to 1,607.77 as local investors rushed to book profits ahead the Greek debt swap deal.
Analysts said that the success of the Greek deal has revived investor confidence and some of those who took profits on Thursday returned to the market on Sunday.
"The big surge yesterday was supported by a combination of factors such as strong oil prices, stronger-than-forecast US jobs data and more than everything the return of market confidence following the success of the Greek debt swap," said a Dubai based broker. Arabtec Holding surged 9.74 per cent as the DFM stock surged 9.73 per cent. Tamweel's shares gained 6.56 per cent. Tabreed gained 3.7 per cent. DFM and Tamweel counters also traded large volumes of 99 million and 46 million shares respectively.
Abu Dhabi
Abu Dhabi's ADX General Index increased one per cent, the most since February 26. The market traded close to 140 million shares worth Dh159 million in 1,840 trades.
Key property sector shares such as Aldar Properties and Sorouh Real Estate gained close to 8 per cent each on Sunday on the news that these companies are studying a possible merger with the blessings of the Abu Dhabi government.
Aldar and Sorouh shares have rallied this year after Abu Dhabi said it plans to resume projects including branches of the Louvre and Guggenheim museums after reviewing their viability.
Aldar, which is building thousands of homes and offices in Abu Dhabi, received Dh36 billion in government support last year and the company sold assets including a Ferrari theme park to the state. Aldar has rallied about 33 per cent this year following a 60 per cent slump in 2011. Sorouh has jumped 44 per cent this year after losing 48 per cent last year.
In the banking sector National Bank of Abu Dhabi gained 2.2 per cent as National Bank of Umm Al Qaiwain and Union National Bank gained close to 10 per cent and 4 per cent respectively.
Out of the 29 shares traded yesterday 20 reported gains as 6 declined indicating a return of investors to the market. Market operators said there are signs of recovery in sentiment, and the rally could be sustained for the week ahead.
Across the GCC other leading market indices such as Oman's MSM 30 Index and Qatar's QE Index advanced 0.5 per cent each. Kuwait's Stock Exchange Index decreased 0.4 per cent. Bahrain's BB All Share Index fell one per cent, snapping a four-day rally.
