Abu Dhabi: The UAE bourses ended the month on a high note as the Dubai Financial Market (DFM) index went up 2.73 per cent on Sunday to reach 5,062.96, marking the greatest rise in the index this month. The increase brings the total change in the index in August to 4.77 per cent.
Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index rose 0.23 per cent to reach 5,082.72.
In Dubai, Emaar topped the market in terms of value traded, accounting for 47 per cent of the total market trade value, and taking the spotlight off Arabtec, which usually tops the market. Emaar’s share prices climbed 8.78 per cent to reach Dh11.15 on the back of news about the company’s intention to proceed with an initial public offering for the shares of Emaar Malls Group.
Analyst Osama Al Ashry said he was optimistic about Emaar’s performance, and expected share prices to reach their target of Dh12.5 in September, and reach Dh15 in the last quarter of the year.
Other powerhouses in Dubai also ended the day with gains. Arabtec share prices went up 2.34 per cent, Union Properties rose 1.34 per cent, Gulf Finance House inclined 2.46 per cent, Dubai Investments Co. added 1.33 per cent, and DFM share prices gained 1.76 per cent.
Despite some gains in the banking sector, the real estate sector dominated the market as developers Emaar, Arabtec, and Union Properties alone accounted for 82.5 per cent of the total value of trade on DFM.
Commenting on the overall market performance, Al Ashry said, “I think it’s a positive sign for the index to end the month at this level. The DFM index now has a resistance level of 5,286, so we’ll have to wait and see if Emaar’s rise will push up the index too.”
He added that the real estate sector in Dubai appears to be of medium risk, and does not have a positive outlook, with the exception of Emaar.
In the capital, Ras Al Khaimah Ceramic Co. topped the gainers’ list with a 6.29 per cent change, followed by Abu Dhabi National Company for Building Materials (Bildco) with 3.15 per cent, Dana Gas with 2.86 per cent, and Abu Dhabi Ship Building Co. with 1.36 per cent.
Al Ashry, a member of UK organisation, Society of Technical Analysts, described ADX as a more stable market than DFM.
“I think the ADX index could reach its resistance level of 5,288, and then once that is broken, it could climb to 5,555. In Abu Dhabi, Aldar look positive, and has a resistance level of Dh4.27, which, if broken, could see Aldar share prices at Dh5,” he said.
Of the 32 stocks traded on DFM, 21 went up, four went down, and seven remained unchanged. Of the 32 stocks traded on ADX, 13 advanced, 14 declined, and five remained flat.
