Dubai market continues to recover strongly

Abu Dhabi: UAE stocks continued their recovery on Tuesday, with Dubai's index gaining more than two per cent for the second consecutive day, and Abu Dhabi reversing course to gain more than one per cent.

Dubai's general index ended the session at 433.66 points, with all the leading shares recording gains, and Emaar approaching Dh14 as it gained three per cent to close at Dh13.75.

Gulf General Investments was among the top gainers, rising 2.96 per cent to Dh2.96 on news of Emirates Securities and Commodities Authority's (Esca) approval for a five per cent buyback.

"Investors, mostly speculators were weary that Ramadan will be a slowdown period for the markets, and that's why we saw these massive sell-offs two days ahead of the holy month. Nevertheless, it seems that they were wrong, where we find the first days are witnessing a recovery," said Ahmad Abdul Rahman, an analyst at Amanah Capital.

Although he expressed concern about high volatility during the session, (banned word) the bulk of the gains were made towards the close. The value of shares traded rose to more than Dh1.5 billion, with all sectors ending in the black.

In Abu Dhabi, the general index advanced for the first time this week 1.01 per cent to 3544.77 points but the value of the shares traded remained weak, indicating that there are no genuine strong demand yet, analysts said. The day's recovery saved many leading shares from falling through strong support levels. However, if the National Bank of Abu Dhabi achieves its gains through a single transaction must raise question marks, they added.

Ras Al Khaimah National Insurance maintained its strong gains with no justification so far, the share gained 9.79 per cent to close at Dh3.59.