Dubai stocks climbed on Sunday on last week’s positive global cues as investors also position themselves betting a rise in share prices after Eid.
“The DFM rose in line with global market moves towards end of last week,” said Amer Khan, fund manager at Shuaa Asset Management. “Its been unusually well bid through the summer, the results thus far have lent further support to that sentiment. So, today was likely continued investor positioning ahead of post-Eid markets.”
Construction and property stocks led the rally as investors gain increasing confidence in the emirate’s real estate recovery that is reflected in the increasing prices in various segments.
According to Knight Frank Prime Global Cities Index, luxury house prices in Dubai saw a six per cent increase in the second quarter. Over the past year, prime real estate prices in the emirate has soared 21.6 per cent, making it the second best performing property market globally.
“The city is attracting demand from North African, Asian and Middle Eastern buyers. Many are cash buyers which may mitigate the impact of the prospective mortgage cap which is currently under discussion,” Knight Frank added.
In Dubai, Arabtec jumped 6.55 per cent to Dh2.44, followed by Drake and Scull International advancing 2.56 per cent to Dh 1.20. Emaar Properties was up 0.83 per cent to Dh3.58 and Union Properties rose 2.32 per cent to Dh0.441.
Union properties, later in the day, announced its second quarter net profits ending June 30 increased by 35.52 per cent to Dh113.26 million, compared to the same period last year.
In Abu Dhabi, Aldar Properties surged to its highest in more than three years on expectations that the company will report strong second quarter numbers this week. The company will be reporting its quarterly earning on Tuesday, the first time as a merged entity after the completion of its acquisition of Sorouh Real Estate in June. The stock gained 7.66 per cent to Dh7.95 on a turnover of Dh452.79 million.
The Abu Dhabi benchmark index ADX General Index was up 0.21 per cent to 3930.85. Of the 28 stocks traded, 10 gained, 10 lost and eight remained flat.
Dana Gas was among the biggest losers, retreating 3.13 per cent to Dh0.62.
