UAE stock markets see heavy trade

Abu Dhabi: Heavy trading resumed in the UAE markets on Sunday as more than Dh7.5 billion worth of shares changed hands.

The Emirates Securities general index advanced by more than one per cent to 5,680.61, approaching 41 per cent of gains since the beginning of 2007.

In Dubai, the benchmark index added 1.08 per cent to its value to close at 5,404.40, with some analysts forecasting a correction in the short term.

"At this point, the Dubai Financial Market (DFM) needs consolidation and correction to continue a healthy growth path," said Mohammad Beheiri, dealings and portfolio manager at Amanah Capital.

Volatile growth

DFM's shares resumed the highly volatile growth, on heavy trading, with 10.35 per cent of gains to close at Dh5.65, while Emaar Properties was unchanged by the close at Dh13.60.

More than Dh1 billion worth of DFM's shares were traded, while Emaar accounted for Dh0.925 billion worth of trades.

In Abu Dhabi, the general index advanced by 0.94 per cent to 4,382.22, with the heavy trading on the energy and real estate sectors.

"With the international oil prices at record highs, and the listing of Dana Gas' sukuks on the London stock exchange, a strong rally developed on the already highly demanded energy sector in Abu Dhabi," Beheiri explained.

"The emirate has announced as well mega plans for urban development, and foreign interest in the equities are surging, and what is needed now is to allow for more foreign stakes," he added.

Dana surged by 8.46 per cent to Dh2.18, while Aabar Petroleum rose 3.7 per cent to Dh4.49.

In the real estate sector, Ras Al Khaimah Properties accounted for the most traded share in terms of value and volume, and shot up by 6.83 per cent to Dh2.19, while Aldar Properties and Sorouh Real Estate were virtually unchanged by the close.

The decline of the index's heavyweights, etisalat and National Bank of Abu Dhabi, by 1.35 and 0.21 per cent respectively, limited the strong gains recorded by the general index.

etisalat rumours

"Rumours about the opening up of etisalat have had a strong effect on the market rally," Beheiri said.

With liquidity surging in the UAE markets, reports and investor opinion polls suggest a merger of DFM and ADSM to create the second-largest stock market in the region in terms of capitalisation after Saudi Arabia.

"A better practical and applicable approach can be unifying trading procedures and regulations in both markets, hence merging the activities rather than the entities," he said.