DFM, ADX shares surge on possible Fed action

Dubai: The Dubai Financial Market (DFM) index surged yesterday (Sunday) in line with the other regional markets such as Saudi Arabia in anticipation of the US Federal Reserve would unleash a third round of quantitative easing to shore up the world’s largest economy later this week.

The latest US unemployment data for August showed a weak jobs growth, with analysts predicting it would force the Fed into printing more money to buy government bonds and mortgage-backed securities. The move is widely perceived to be good news for investments into riskier asset classes such as global stocks and commodities.

Lately, the volume of trade on the Dubai market has been extremely low due to lack of catalysts.

However, yesterday (Sunday) the market saw some aggressive buying by investors in Emaar, Drake & Scull Int, Tamweel and Arabtec stocks as analysts perceive the market move may be the beginning of a rally.

The DFM index closed at 1,571.26, up 1.01 per cent. Around 185.12 million shares, cumulatively worth about Dh198.72 million were traded on the stock market.

Over 15.34 million shares of real estate major Emaar, cumulatively valued at around Dh51.9 million were traded on the market yesterday, its stock closing 1.8 per cent higher at Dh3.40.

Of the 28 company stocks traded yesterday, 20 rose, while five fell and three closed unchanged. The day’s top gainer was Al Madina, its stock rising 14.89 per cent to close at Dh0.841. Salam_Bah Al Salam Bank-Bahrain was the day’s main loser, its shares fell 2.68 per cent to close at Dh0.399. The shares of Emaar were the most traded by value while the shares of Drake & Scull Int were the most traded by volume.

Abu Dhabi

By Himendra Mohan Kumar

Staff Reporter

Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) general index rose in line with bullish sentiments returning to the regional markets which are anticipating a strong move by the US Federal Reserve in terms of monetary policy easing later in the week in a bid to jump-start a flagging local economy, which happens to be the world’s largest.

Yesterday (Sunday), the investors bought into some of the attractively-valued real estate and banking stocks and built positions in what appears to be the start of a market rally.

The volume of trade on the market surged with the total value of share transactions well above Dh142 million. The Abu Dhabi market had been trading in a narrow range in recent weeks due to an absence of catalysts.

Analysts say the short-to medium term outlook for the Abu Dhabi market remains positive supported by an improvement in global risk appetite and higher international crude oil prices.

The ADX general index closed yesterday at 2,588.57, up 1.01 per cent. Around 88.34 million shares, cumulatively valued at about Dh142.28 million were traded on the Abu Dhabi stock market yesterday. Of the 33 company stocks traded, 15 advanced, while nine declined and an equal number closed unchanged.

The stock of Abu Dhabi’s real estate major Aldar Properties closed 1.64 per cent higher at Dh1.26. About 22.43 million shares of Aldar, cumulatively worth about Dh27.88 million changed hands on the market.

The top gainer on the Abu Dhabi market yesterday was Sorouh Real Estate, its shares closing 5.36 per cent higher at Dh1.21. Watania was the day’s top loser, its stock closing 9.6 per cent lower at Dh1.13. The shares of Sorouh were the most traded in terms of value and volume.