Dubai: The Dubai index edged higher on Tuesday with Gulf Finance House (GFH) still trading in the vicinity of its highest level in 52 weeks and accounting for nearly half of trading on the local bourse.

The Dubai Financial Market (DFM) General Index closed 0.34 per cent higher at 3,719.99. GFH closed 11.16 per cent higher at Dh2.69.

GFH shares worth Dh488 million were traded out of the day’s total of Dh950 million.

“We [will] see a pattern in chasing dividend stories, or chasing stocks that have outperformed expectations in terms of fourth-quarter performance, and rotating back to high-beta stocks, which are not earning stories but on restructuring,” Sanyalaksna Manibhandu, director of research at the National Bank of Abu Dhabi Securities, said.

Amanat closed at 1.89, more than a per cent higher. Union Properties closed flat at Dh1.15. Out of a total of 37 stocks traded on the exchange, the shares of 17 firms fell while those of 13 others rose. The rest remained steady.

The Abu Dhabi Securities Exchange (ADX) General Index closed 0.47 per cent higher at 4,679.26.

Waha Capital closed more than 4 per cent higher, while Manazel Real Estate settled 4.55 per cent higher. Out of a total of 31 stocks traded on the exchange, the shares of 17 companies advanced while those of seven others fell. The rest remained steady.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul All Share Index was 1.16 per cent higher at 7,094.21. The Qatar Exchange index closed 0.98 per cent higher at 11,057.83 while the Muscat MSM 30 Index closed almost flat at 5,766.49.

No change

“Nothing has really changed. We are moving towards the results’ season. It’s dividends that [are] providing impetus to trade. Since we have some results, so it should be ‘sell on facts’. But they are not doing that as they are hoping for a dividend,” Manibhandu said.

The Tadawul has been underperforming since the start of the year, shedding 1.69 per cent over the period.

“When the results are all out, we might see profit taking, and people start to chase companies which would go ex-dividend, and then people would start to see the first-quarter results,” Manibhandu said.

“Even if the crude goes to $60 per barrel, that would not prevent the government [from] tightening its belt for another, so that is a negative for consumer stocks,” Manibhandu added.