Dubai: UAE markets ended the week higher on Thursday with Dubai’s benchmark stock index surging more than four per cent compared to a one per cent rise in the capital’s measure.
The Dubai Financial Market General Index rose 1.45 per cent to 3931.44 as volumes and turnover fell to 2.67 from Wednesday’s Dh3.25 billion. Total volume traded stood at 1.27 billion shares. Much of the trading was driven by investors buying shares of Emaar Properties, the bonds of which was upgraded on Wednesday to investment grade by ratings agency S&P, with a stable outlook. The stock jumped 4.67 per cent to Dh8.30.
“After the upgrade, the fixed income reacted positively, as expected, but surprisingly the equity market also,” said Sebastien Henin, head of asset investment at Abu-Dhabi based The National Investor (TNI). “Emaar has under performed the index during the past sessions. The rating agency decision yesterday triggered a strong reaction from market participants today.”
Other construction and real estate stocks were among the ones which slipped. Arabtec, Drake and Scull and Union Properties lost 0.60 per cent, 1.18 per cent and 0.56 per cent respectively.
For the week, the Dubai stock market was up 4.21 per cent with net foreign investment (that is non-UAE nationals) reaching Dh28.5 million as aggregate buy.
The value of stocks bought by institutional investors reached Dh2.69 billion comprising 26.8 per cent of the total value of stocks traded during the past five days. Net institutional investment on the market reached Dh52.9 million during the period as an aggregate buy.
Year to date, the DFM measure is up 17.99 per cent.
Air Arabia was among the top five most active stocks in terms of traded value and ended 4.49 per cent higher at Dh1.63. The budget airline was last week declared the official airways of Ras Al Khaimah and their CEO told local media that they would be making full use of the airport in the northern emirate, operating flights to the region from there, in addition to the flights from their hub in Sharjah.
Dubai Financial Market continues to reap benefit from higher level of trading on the exchange and the share price increased 4.23 per cent to Dh2.71.
Abu Dhabi
The Abu Dhabi General Index climbed 0.71 per cent to 4721.72 even as majority of stocks declined. The Index was up 1.03 per cent this week.
Of the 41 stocks traded, 22 decreased. 16 advanced and three remained unchanged. Services and Investment and financial services sector stocks were down 4.60 per cent and 1.47 per cent. Banks and Industrial stocks closed higher, gaining 1.35 per cent and 3.84 per cent.
Waha Capital fell 1.10 per cent, Rak Properties was up 1.63 per cent and First Gulf Bank rose 2.72 per cent.
