Dubai: Shares on the Dubai Financial Market (DFM) rallied on Sunday despite Dubai Islamic Bank’s confirmation that its board had approved plans to fully acquire its mortgage unit Tamweel, in which it already holds a majority stake of 58.2 per cent. Shares in both Dubai Islamic and Tamweel fell.
Overall, the DFM index rose 0.74 per cent to close at 1,694.13 with gainers outperforming losers on the market. The share market in Dubai is witnessing a rally in line with other global financial markets ever since the stalemate over the US budget was partly broken last week with lawmakers approving tax increases in the world’s largest economy. Market participants’ appetite for riskier assets has seen a marked increase in recent days, which is reflected through the substantially higher amount of share transactions.
On Sunday, the investors bought shares in real estate major Emaar, Ajman Bank, Drake & Scull Int and Hits Telecom. Analysts say, the current bullish run on the market could take the index past the 1,700 mark over the next few trading sessions. Around 321.74 million shares, cumulatively worth about Dh342.46 million were traded on the Dubai market yesterday. Emaar’s shares cumulatively valued at around Dh84.1 million were traded, its stock closing 2.56 per cent higher at Dh4.01.
Of the 28 company stocks traded, 18 rose, while 8 fell and 2 closed unchanged. The day’s top gainer was Salam_Bah - Al Salam Bank - Bahrain, its stock rising 5.65 per cent to close at Dh0.673. Tamweel was the day’s main loser, its shares fell 4.2 per cent to close at Dh1.14. The shares of Emaar were the most traded by value, while Drake & Scull’s shares were the most traded by volume.
The Abu Dhabi Securities Exchange (ADX) general index extended its gains of last week on Sunday, rising 0.88 per cent to close at 2,709.67 as investors made a return to the market following an improvement in global risk appetite. The cumulative value of share transactions yesterday exceeded Dh165 million.
Telecommunications major Etisalat’s stock, which has a high weightage on the index, closed 0.22 per cent lower at Dh9.07, but gains in banking, real estate, energy and industrial shares helped the market to rally. Around 135.24 million shares were traded, valued at about Dh165.52 million. Of the 27 company stocks which traded, as many as 19 advanced, while 5 fell and 3 closed unchanged.
The Abu Dhabi market has been gaining since the beginning of the new year in line with other global markets. This came after a deadlock in the US budget talks was broken and lawmakers agreed to increase tax rates for the high income earners in the world’s largest economy.
Experts say the Abu Dhabi market could witness greater upside moves in the days ahead, if the proposed merger of Abu Dhabi’s top real estate companies Aldar and Sorouh comes through. The merger would become a catalyst to draw more foreign capital into a market that had been running low on liquidity for much of 2012.
The stock of Aldar Properties closed yesterday 2.94 per cent higher at Dh1.40. About 31.04 million shares of Aldar, cumulatively worth about Dh42.52 million changed hands on the market. Sorouh Real Estate’s shares, also rose, closing 2.96 per cent higher at Dh1.39.
The top gainer on the Abu Dhabi market was Green Crescent Insurance Company, its shares closing 13.95 per cent higher at Dh0.49. Invest Bank was the top loser, its stock ending the day 2.35 per cent lower at Dh1.66. The shares of Aldar were the most traded in terms of value as well as volume.