Dubai: Dubai index gained for a third consecutive session on Thursday, as continued recovery attracted more buyers, thereby lifting its traded volumes.

Traded volumes surged to Dh627 million on Thursday, which otherwise sees lacklustre volumes, from an average of Dh250 million in the past few sessions. The Dubai Financial Market General Index closed 0.63 per cent higher at 3,340.49, after gaining more than 2 per cent in the previous two sessions.

“Investors are aiming at high yielding stocks as we approach the year-end. The downside journey since August till a few days ago was enough for stocks to look attractive to investors,” said Talal Touqan, Head of Research and Advisory at Al Ramz Capital, adding “challenges are growing internationally and regionally, but it’s the matter of stock prices for investors”.

Gulf Finance House witnessed some profit-taking after gaining to as high as Dh1.17. The stock finally closed 2.67 per cent lower at Dh1.10.

“GFH continued surged again as expected, tested the short term target at Dh1.15, may head higher towards Dh1.22 in the medium term,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

Dubai Entertainments closed 4.49 per cent higher at Dh1.63. “DXB Entertainments witnessed good amount of accumulation from Dh1.45-1.50 levels, met the initial target at Dh1.62, may target next Dh1.72 short term,” Prakash said.

Among other stocks, Shuaa Capital rose more than 8 per cent to close a Dh0.963, while Drake and Scull closed 1.7 per cent higher at Dh0.470. “Tabreed, GulfNav, Shuaa Capital and Amanat are holding firm over the critical support levels and may soon attract fresh buying,” Prakash added.

Out of a total of 34 stocks traded on the exchange, shares of 20 firms fell, while other 10 rose. The rest remained steady.

Upside

“We have a small upside in Dubai index to target 3,380,” Touqan said, adding “before technical correction can take place. If we will break out, will depend on how funds would react to global and international events and the stance of ECB.”

In Abu Dhabi, the general index closed 0.34 per cent lower at 4,294.46. Aldar Properties closed more than 1 per cent lower at Dh2.66. Waha Capital closed more than 3 per cent to end at Dh1.84. Out of a total of 26 stocks traded on the exchange, shares of 13 firms fell, while other 9 rose. The rest remained steady.

Saudi is witnessing a relief rally after the ministry said they would start paying contractors.

“Saudi markets have dropped significantly so that is making look stock prices attractive and especially after the greater than expected Sabic results,” said Touqan. The Tadawul index, jumping most in the region, was 2.63 per cent higher at 5,667.63.

Elsewhere in the region, the Qatar exchange index closed 0.13 per cent lower at 10,438.45. Kuwait Stock Exchange general index closed 0.12 per cent higher at 5,321.46. Muscat Securities MSM 30 index closed 0.55 per cent lower at 5,562.31.