Emaar Properties most active as Dubai market rallies

Dubai: The Dubai index edged higher on Wednesday, amid dull volumes, remaining above the keenly watched 3,500 support level, and Emaar Properties was the most active stock in terms of traded value.

The Dubai Financial Market (DFM) General Index closed 0.43 per cent higher at 3,520.15.

Emaar Properties ended 0.55 per cent higher at Dh7.25, contributing to 20 per cent of the total volumes.

But generally, volumes remained dull, ahead of overseas holidays for Christmas and the New Year.

“It was a quiet day on markets, with a lot of people on vacations,” said Saleem Khokhar, head of equities at NBAD’s asset management group.

“Generally, we expect to see low volumes, and higher volatility into year-end, with the international market taking more of a focus,” said Khokhar.

In other stocks, Union Properties closed 1.8 per cent higher at Dh1.12. Gulf Finance House closed 1.58 per cent higher at Dh1.93. Marka jumped 7.9 per cent after the chief executive officer announced his resignation.

Out of a total of 39 stocks traded on the exchange, shares of 12 firms fell, while other 23 firms rose. The rest remained steady.

The Abu Dhabi Securities Exchange General index closed 0.26 per cent lower at 4,467.19. Eshraq Properties closed 1 per cent higher at Dh1.01.

Elsewhere in the Gulf, the Qatar exchange index closed almost steady at 10,392.15.

“The market-moving news on Tuesday was from Qatar on a possible three way combination of local banks there,” Khokhar said.

Positive:

“I’m expecting the new year to be positive the way oil has been holding and going up,” Khokhar said. “Globally, however we are seeing a big rotation from fixed income into equities. This will be big themes to watch out for.”

The Dubai Financial Market General index has gained more than 12 per cent since the start of the calendar year, compared to 6.25 per cent gains in MSCI emerging market index.

“We will see emerging market fund managers positioning themselves in dollar based assets,” Khokhar said, adding “And that is a positive thing for GCC stocks.”

The GCC is a dollar pegged economy.

“We could see a little bit of catch-up happening in Qatari stocks particularly in banks as they have been under-performers,” Khokhar said.

Despite the bullish run, Khokhar said, Egyptian stocks won’t be favoured.

“It is a positive environment for equities, but I’ll be focused on dollar-based equities, rather than local currency stocks. One will have to do a little bit of differentiation there,” he added.

Egyptian stocks continued their streak for a fifth day, gaining more than 1 per cent to stay near a record high.