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Dubai market closes near three-year highs

Dubai market gains reflect optimism in real estate market’s recovery

Gulf News

Abu Dhabi: Dubai’s equities markets yesterday traded near a three-year highs yesterday on signs of continued recovery in the emirate’s real estate sector, which had gone into a prolonged slump following the global financial crisis of 2008.

Real estate major Emaar drove the market’s rally to levels previously seen in April 2010.

The DFM index closed 0.95 per cent higher yesterday at 1,791.73, with the 1,800 level clearly in sight. Market experts expect the current bull run to be sustained by foreign and retail investors who see potential in an oversold market and amid some attractive share valuations.

“The market is anticipating big news on the real estate front as well as from banks, in addition to Amlak’s debt issue which is back on the table to be resolved in 2013, as announced. There is some recovery in the real estate sector in terms of the pricing and Aldar and Sorouh’s merger may happen anytime now, which has reflected positively on the trading volumes,” Musa Haddad, Head of Investment Advisory at National Bank of Abu Dhabi Asset Management told Gulf News by telephone.

Blue-chip stocks

“In the medium-term, the Dubai market may reach 2,200- 2,400 levels and any profit-taking should be seen as an opportunity to accumulate more blue-chip stocks,” he added.

Overall, around 550.55 million shares, cumulatively worth about Dh655.22 million changed hands on the market. Emaar’s shares cumulatively valued at around Dh126.23 million were traded, its stock closing 4.12 per cent higher at Dh4.30. Tabreed’s shares gained 2.42 per cent to close at Dh1.69.

Meanwhile, in Abu Dhabi, the Abu Dhabi Securities Exchange (ADX) general index rose 0.58 per cent yesterday.

The index’s gain is an indication of consolidation taking place in the market ahead of a potential rally that would likely take the index past the 2,800 mark in the coming trading sessions.

The market since the beginning of 2013 has been witness to a bull run, which took the index past 1,700 as global investors’ immediate fears on the US going over the fiscal cliff were allayed. 
The ADX general index closed at 2,782 with more liquidity set to get pumped in during the coming days, according to market participants.