Dubai
It was green almost across the board on the Dubai bourse on Thursday, with stocks recording modest gains and the main index ending the day 0.75 per cent higher.
Trade values were also higher, reaching Dh919.4 million on the Dubai Financial Market (DFM) as trade continued to concentrate on smaller cap stocks such as Drake and Scull International and GFH Financial Group.
The DFM index ended at 3,672.77. Union Properties was the most actively traded stock, accounting for around a third of the market’s total traded values. Its share prices gained 2.2 per cent.
“People definitely have money on the sidelines, and when there are enough good catalysts, they will definitely trade. I think what’s driving [trade values today] is that people like certainty,” said Sanyalaksna Manibhandu, director of research at National Bank of Abu Dhabi Securities.
He pointed catalysts that include a rebound in oil prices over the past three months, with Brent crude prices having jumped from around $45 in late June to their current $57 a barrel price — a 27 per cent rise.
On the Dubai bourse specifically, news earlier this month about DSI completing its capital restructuring programme supported by a new investor, Tabarak Investment, have also spurred buying activity.
The capital restructuring is expected to turnaround the company’s financial position, with DSI planning to focus on its core business in mechanical, electrical, and plumbing to grow. The programme also involved Tabarak injecting Dh500 million into DSI.
“If you have a strong shareholder with a track record of generating a lot of volume in other stocks like Gulf Navigation, then at some point, people will extrapolate, and they will see the next target as a good stock to trade for a while, and that’s what’s happening to DSI,” Manibhandu said.
DSI’s share prices rose 5.8 per cent on Thursday to reach Dh2.01, while GFH share prices gained 1.8 per cent. Emaar was up 0.69 per cent, as Arabtec and Gulf Navigation ended 1 per cent and 2.88 per cent higher respectively.
Going forward, Manibhandu said investors are likely to focus on the “dividend trade,” buying stocks that have the potential to distribute to pay good dividends in early 2018.
In the capital, the Abu Dhabi Securities Exchange (ADX) general index was almost flat, inching up 0.07 per cent to reach 4,505.31. Trade on ADX concentrated on blue chips including Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Etisalat, and Aldar Properties.
Dana Gas was also among the most actively traded in Abu Dhabi. The company confirmed on Thursday that its operations and production in the Kurdistan Region of Iraq are proceeding as usual. It said it is also continuing to supply gas to power stations as per usual.
The confirmation on Dana Gas’ operations in the region come after Iraqi forces moved to take over oilfields near Kirkuk from Kurdish fighters earlier this week. Iraqi forces said they have captured a refinery and other facilities in the province, Bloomberg reported.
