Dubai: The ongoing bull run on the Dubai stock market extended further on Thursday with the index gaining 0.72 per cent to close at 1,887.59. The market bucked the global sentiments which were bearish following data showing a 0.1 per cent decline in US gross domestic product growth in the quarter ended December.
On Thursday, the market’s gains were led by construction firm Arabtec, whose shares rose 5.71 per cent. However, profit-taking by investors in real estate major Emaar’s shares following a recent rally checked the index’s gains. The market’s next resistance level is now expected to come at 1,950. Analysts say, the DFM index has the potential to could go as high as 2,200-2,400 in the medium term. The market sentiments have turned positive due to a revival in the emirate’s real estate sector after a prolonged slump.
Overall, around 332.98 million shares, cumulatively worth about Dh499.68 million changed hands on the market. Around 22.74 million Emaar shares cumulatively valued at around Dh110.75 million were traded, its stock closing 0.2 per cent lower at Dh4.87. Arabtec’s stock closed at Dh2.96, while Dubai Islamic Bank’s shares gained 0.9 per cent to close at Dh2.24.
Of the 26 company stocks traded on the market on Thursday, 14 rose, while 10 fell and 2 closed unchanged. The day’s top gainer was Arabtec. Mazaya was the day’s main loser, its stock closing 9.09 per cent at Dh1. Shares of Arabtec were the most traded by value as well as by volume.
The Abu Dhabi Securities Exchange (ADX) general index extended its rally gaining 0.92 per cent on Thursday to close at 2,877.36. Investors are pouring fresh liquidity into the market as it still appears to be undersold which creates opportunities for higher returns in the medium term.
On Thursday, the market’s gains were led by banking, real estate, telecommunication and industrial stocks, although energy shares remained unchanged. The cumulative volume of shares transacted on the market on Thursday was 195.81 million with the total value of share transactions valued at Dh291.57 million, up from Dh89.25 million on Wednesday.
The day’s highlight was Sorouh Real Estate reporting a net profit of DhD507.5 million, which was 32 per cent higher than 2011. Sorouh’s 2012 revenue of Dh3 billion was mainly driven by National Housing projects.
Telecommunications major etisalat’s stock, which has a high weightage on the index, closed 0.52 per cent higher at Dh9.66. Among other major stocks, Aldar Properties’ shares gained 2.14 per cent, closing at Dh1.43, while Sorouh’s shares fell 1.13 per cent to Dh1.75 on profit-taking by investors following recent gains.
Of the 35 company stocks traded on Thursday, 19 advanced, while 9 fell and 7 closed unchanged.
The top gainer on the Abu Dhabi market on Thursday was Fujairah Cement Industries, its shares gaining 14.29 per cent to close at Dh1.04. Al Khazna Insurance Co was the day’s top loser, its stock declining 6.25 per cent to close at Dh0.75. The shares of Aldar were the most traded in terms of value, while Eshraq’s shares were the most traded by volume.