Dubai: The Dubai index staged a smart recovery on Wednesday, snapping a three-day losing streak, helped by recovering crude oil. The Abu Dhabi index, however, ended lower.
The Dubai Financial Market General Index ended 1.12 per cent higher at 4,114.73, after losing more than 3.7 per cent in the previous three sessions.
“There were a combination of factors for the recovery, which included stronger sentiment in international markets and recovering crude oil,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.
Oil extended its advance to trade above $62 a barrel on signs the US supply glut is easing. Futures gained as much as 2.8 per cent in New York to the highest level since December.
“I see the index showing signs of further recovery and general trend is still strong. A breakout above 4,200 would indicate a higher target of 4,500,” Shurrab said.
Gulf Finance House, which contributed to about 25 per cent of the volumes, ended 13.33 per cent higher at Dh0.850. Construction major Damac Properties ended 5.23 per cent higher at Dh3.22.
Emaar Malls ended 3.13 per cent higher at Dh3.30, while its parent Emaar Properties ended 0.90 per cent higher at Dh7.83.
Arabtec ended 1.12 per cent higher at Dh2.71 after the board appointed Mohamed Thani Murshed Ghannam al-Rumaithi as its new chairman.
Valuations
Out of a total 37 companies traded on the exchange, shares of 27 companies rose, while shares of 6 others fell.
The Abu Dhabi Securities Exchange General Index ended at 4,566, down more than half a per cent.
Shares of Dana Gas extended losses for another session, ending down 2.08 per cent at Dh0.47 after posting a more than 70 per cent.
Out of a total of 27 companies traded on the exchange, shares of 12 companies rose, while shares of 11 companies fell.
Tadawul index
“Saudi has been performing on a positive note, with participation has been in blue chips ahead of the opening up for foreigners,” Shurrab said.
Saudi’s Tadawul All Share index (Tasi) ended 0.31 per cent higher at 9,781.69.
Saudi Basic Industries, the world’s largest petrochemical company, ended 0.28 per cent higher at 107.50 Saudi Riyals.
“Saudi is a lot more expensive than the UAE, even if people want to go to Saudi Arabia, and you think it is too expensive, then it has a spill over effect, because Saudi and UAE are positively co-related,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Elsewhere in the Gulf, Qatar Exchange Index ended 1.04 per cent higher at 12,334.06, while Bahrain Bourse All Share Index ended 0.22 per cent higher at 1,390.89.
