Dubai: The Dubai index rose on Thursday, recovering from the previous day’s 1 per cen fall as upbeat sentiment from US markets made traders prone to risks.
The Dubai Financial Market General Index was 0.62 per cent higher at 3,701.46, a day after the US Dow Jones index topped the elusive 20,000 mark.
“We saw some profit-taking activity on Wednesday and it was expected. We have seen the market consolidate at very appropriate levels. The main catalyst for the strong sentiment is the continuation of the strong performance in international markets,” said Marwan Shurrab, an investment manager based in the UAE.
Among the top gainers, Gulf Finance House jumped nearly 5 per cent to end at Dh2.55, after losing more than 9 per cent in the previous session.
“Gulf Finance House over the past couple of days witnessed profit-taking activity. People are trying to take advantage of volatility,” Shurrab added.
Emaar Properties closed more than 1 per cent at Dh7.60. Dubai Entertainments closed 5.26 per cent higher at Dh1.20. Tabreed closed more than 3.5 per cent at Dh1.97. Out of a total of 39 stocks traded on the exchange, shares of 29 firms rose, while another five fell.
The Abu Dhabi Securities Exchange general index closed 0.38 per cent higher at 4,624.17.
Eshraq Properties closed 0.88 per cent higher at Dh1.14, while International Fish Farming closed 9.75 per cent lower at Dh3.24. Aldar Properties closed 1.16 per cent higher at Dh2.62. RAK Properties closed 3.90 per cent higher at Dh0.80.
Out of a total of 29 stocks traded on the exchange, shares of 17 firms rose, while other 7 stocks fell.
Dividend yields
“People are now positioning for dividend yields. This is one of the reason why markets are supported rather than seeing more selling pressure,” Shurrab said.
“The focus would on year-end results of banks and we will get a clear picture of the first quarter results from companies,” Shurrab said, which may help traders to take future positions.
The Tadawul index in Saudi Arabia was flat at 7,130.28.
Alinma Bank closed 0.33 per cent higher at 15.10 Saudi riyals, while Saudi Basic Industries closed more than 1 per cent higher at 97 riyals. Dar Alarkan Real Estate Development was steady at Dh6.15.
Elsewhere in the Gulf, the Qatar exchange index closed 0.42 per cent lower at 10,989.76. The Muscat Securities MSM 30 index closed 0.24 per cent lower at 5,750.96. The Kuwait Stock Exchange index closed 0.49 per cent higher at 6,852.30.