Dubai: The Dubai stock market index rose strongly yesterday led by an increase in global risk aversion and infusion of more foreign funds into local stocks. Real estate major Emaar drove the market’s rally with shares of Al Salam Bank — Bahrain, Arabtec and district cooling company, Tabreed, also making major gains.

The DFM index’s resistance level of 1,800 was broken in yesterday’s trading with the index closing for the day at 1,819.01, a level not seen in recent years. With the uptrend on the market set to continue and more bullish signals emerging from the global financial markets, the market may well test the 1,850 level, as early as this week. Analysts say, the DFM index has the potential to could go as high as 2,200-2,400 in the medium term.

The market sentiments have recovered on optimism the emirate’s real estate sector is reviving after a long lull. This is being reflected through the infusion of new foreign funds into the market as the liquidity has surged since the beginning of the new year.

Overall, around 342.62 million shares, cumulatively worth about Dh473.65 million changed hands on the market. Around 32.3 million Emaar shares cumulatively valued at around Dh147.83 million were traded, its stock closing 3.57 per cent higher at Dh4.64. Tabreed’s shares rose 1.2 per cent to close at Dh1.69, while Arabtec’s stock went up 0.72 per cent to Dh2.78.

Of the 30 company stocks traded on the market yesterday, 19 rose, while 7 fell and 4 closed unchanged. The day’s top gainer was Salam_Bah Al Salam Bank — Bahrain, its stock closing 14.97 per cent higher at Dh0.860. Mazaya was the day’s main loser, its stock closing 10 per cent lower at Dh0.990. Shares of Emaar were the most traded by value while Salam_Bah Al Salam Bank — Bahrain’s shares were the most traded by volume.

Abu Dhabi

The Abu Dhabi Securities Exchange (ADX) general index closed yesterday 0.6 per cent higher at 2,799.63, tantalisingly close to the next resistance level of 2,800, the crossing of which would potentially open the floodgates for greater fund flows from both foreign as well as retail investors on the bourse. The market’s gain was led by a rally in banking stocks and real estate, although a decline in energy shares pared the index’s further advance.

The market has largely been on a winning streak since last Monday after it was announced that the boards of Aldar Properties and Sorouh Real Estate had agreed to merge the two property companies and lead to the creation of a $15 billion (Dh55 billion) company, which would be among the largest listed property companies in the Middle East and North Africa region. Sorouh shareholders would be receiving 1.288 Aldar shares for each Sorouh share they hold.

Firm global oil prices, which is the mainstay of Abu Dhabi’s exports and improving global financial indicators continue to lend support to improving market sentiments. The market is widely tipped to surge in the coming weeks as investors are anticipating greater liquidity infusion by foreign and retail investors following Aldar and Sorouh’s joint announcement.

The cumulative value of share transactions on the market yesterday was Dh166.87 million.

Telecommunications major Etisalat’s stock, which has a high weightage on the index, closed 0.21 per cent higher yesterday at Dh9.52. Aldar and Sorouh stocks, however, closed unchanged. Of the 32 company stocks traded yesterday, 14 advanced, while 9 fell and 9 closed unchanged.

The top gainer on the Abu Dhabi market yesterday was Ras Al Khaimah Poultry and Feeding Co, its shares gaining 14.55 per cent to close at Dh1.26. Abu Dhabi Ship Building was the day’s top loser, its stock declining 9.82 per cent to Dh1.01. The shares of Aldar were the most traded in terms of value, while Ras Al Khaimah Cement Company’s shares were the most traded by volume.