Abu Dhabi: The Dubai Financial Market (DFM) index jumped on Monday along with the market’s blue chips just a day after Emaar Properties announced a 16 per cent increase in net profits for the first nine months of the year.
The DFM index rose 1.86 per cent to end the day’s trade at 3,494.65 after sliding two per cent on Sunday. Trade values, albeit still low, were relatively higher, reaching Dh327.2 million. Emaar alone accounted for almost 32 per cent of trade values, though.
Emaar’s share prices rose 4.52 per cent on the back of positive results to reach Dh6.48. Union Properties also went up 3.72 per cent, Emaar Malls was up 1.61 per cent, Dubai Islamic Bank gained 0.79 per cent, and Arabtec ended 0.64 per cent higher.
Gulf Navigation Holding, which on Sunday reported a 123 per cent increase in third quarter profits, jumped 10.4 per cent.
Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index ended almost flat, with a 0.01 per cent increase to reach 4,299.11.
Tariq Qaqish, head of asset management at Al Mal Capital, said that the market was over-sold, with the Emaar results providing a boost for investors to start buying shares.
“Investors have been sitting on the side as there are concerns in terms of future growth, corporate earnings, and the macro picture due to the drop in oil prices. We’re also witnessing a drop in liquidity in the banking sector, which is also behind the lower trade values,” he said.
Qaqish added that geopolitical issues were another concern among investors in the region.
“We’re seeing positive comments on the situation in Syria so that will help the region stabilise again. Another factor that we should be watching is the relationship between Opec members and non-Opec members, so countries like Saudi Arabia, UAE, and Russia,” he said.
The UAE’s equity markets are likely to move on the back of international news rather than local news, especially if the US Federal Reserve announces an interest rate hike in December, he added.
In the capital, Aldar Properties topped the gainers’ list with a 4.87 per cent increase, followed by Ras Al Khaimah Cement Company with 4.76 per cent, Sharjah Islamic Bank with 3.95 per cent, Methaq Insurance with 3.75 per cent, and Green Crescent Insurance with 3.03 per cent.
Of the 35 stocks traded on DFM, 28 went up, and seven went down. Of the 30 stocks traded on ADX, 12 advanced, 12 declined, and six remained flat.
