Dubai: The Dubai Financial Market (DFM) index continued its strong growth to break the psychologically significant barrier of 5,000 today (Tuesday April 22), closing at 5018.98.

The overall volume of shares traded was similar to yesterday (Monday), with a value of Dh2.7 billion.

Among the major drivers were Dubai Islamic Bank (DIB) and market operators Dubai Financial Market (DFM).

DIB saw shares worth Dh322 million traded, with the individual share price closing 4.28 per cent up at Dh6.82. DFM itself saw trading worth Dh425 million, with its shares closing 4.67 per cent up at Dh 3.81.

Property firms did not fare so well. Arabtec, whose shares went above Dh8 yesterday, closed 1.36 per cent down at Dh7.87. The real estate index itself suffered during the day’s trading, closing 0.408 per cent down. But that may change.

“Today, Arabtec’s volume wasn’t like yesterday,” said Osama Al Ashri, a member of the UK’s Society of Technical Analysts. “It’s a limited correction. I think within three or four weeks it will go up again to a new historical high of around Dh8.5. Emaar also has new targets, around Dh11.70.”

While it didn’t add much value - closing 0.94 per cent up at Dh4.31 - Dubai Investment (DIC) saw shares worth Dh234 million change hands.

“I think Dubai Investment has new targets,” said Al Ashri. “It hasn’t had these prices for five years - and it will take part in Expo.”

But while Al Ashri said the rise was likely to continue for another four to six weeks, peaking between 5187 and 5575, but warned a correction would come within two months.

“Most shares are in high-risk areas,” he said. “Within six weeks we will see a new high. After that the market will be subject to a strong correction within two months — at a maximum, before July.”

Shiv Prakash, senior technical analyst at NBAD Securities, told Reuters: “It’s tough to accept as true that the market could bring in further gains after the strong rally, but bullish trends and breakouts to new highs can often go much further than our mind can imagine. The market needs to run a final blow-off rally before the bulls sell.”

The DFM index opened at 4984.04 and crossed the 5,000 mark several times during the day, before closing 0.7 per cent up at 2pm, the end of the day’s trading.

Dubai Islamic Back and market operators Dubai Financial Market were the main supports, climbing 3.8 per cent and 2.5 per cent respectively.

The banking, financial and telecommunications sector indices saw the biggest overall gains, each up by more than 2 per cent, while the property index fell by 0.408 per cent.

The Abu Dhabi Securities Exchange (ADX) index slipped slightly, closing 0.04 per cent down at 5,198.77.

“The ADX is sick,” said Al Ashri. “There are not a lot of active shares. ADX should go to 5,280 within two to three weeks, then up to 5,350.

“There are good shares in Abu Dhabi. Dana Gas could go up to Dh1.70 - it’s now around Dh0.90.

“And Gulf Finance House could be very good - it has a very important resistance point at 80 fils. If it breaks that, it could well go up to between 1.05 and 1.19 within four to six weeks. This company has surprises in the first quarter results in May. I expect good results. There are profits from two projects — it’s already sold 75 per cent of shares from the Leeds club [Leeds United] and did good profit, and they have five high-quality buildings in England where they have sold all units. These profits will enter the first quarter results.”