Dubai index rises above 5,500 on foreign buying

Abu Dhabi: UAE stocks continued their winning streak yesterday by recording 11.85 per cent of capital gains as most of the leading shares continued to advance.

In Dubai, the general index leaped by 2.29 per cent to 5,528.29, hitting a new record since the inception of the new composite.

The value of traded shares remained above average at Dh6.48 billion, indicating the bullish trend is prevailing in the market.

The shares of Dubai Financial Market (DFM) maintained strong gains and shot up by 3.72 per cent to Dh5.86 while Deyaar Development resumed its position as the most traded share in terms of value and volume, surging by 5.68 per cent to Dh2.42.

Trading in the newly listed Al Firdous Holding commenced yesterday, with the company adding 250 per cent to its value that touched Dh2.1 billion as the share price closed at Dh3.50.

Meanwhile, Emaar Properties continued its recovery and advanced by 1.47 per cent to Dh13.80, while Air Arabia gained 4.76 per cent to close at Dh1.76 after the strong quarterly results reported by the Sharjah-based carrier.

None of the sectors closed in the red, only the consumer and materials sub-indices were unchanged.

Since the beginning of October, more than 25 per cent of returns were recorded in DFM, with some analysts optimistic about the medium term and some see an eminent correction in the short term.

"The lower interest rates in the UAE provide more liquidity and render equities more lucrative than banks, while the lower cost of borrowing will further boost corporate performance," commented Rami Sidani, senior associate partner at Shuaa Capital.

"The increasing exposure to foreign investments is yet another catalyst, while the trading in the country's stocks remains today at a discount of about 15 per cent despite all the positive indicators. Hence the uptrend will definitely continue in the short term," he added.

Aldar crosses target

In Abu Dhabi, Sorouh Real Estate took over the position of the most traded share in terms of value, as the rally on the emirate's real estate sector continues.

The developer of Shams Abu Dhabi surged by 4.64 per cent to Dh6.76, while Aldar Properties, Warner Bros' partner in the capital, crossed its target price of Dh10, shooting up by 6.82 per cent to stand at Dh10.65 by the close.

Overall, more than Dh10.32 billion worth of shares changed hands, while the Emirates Securities general index advanced by 1.26 per cent to 5,752.12, a 42.7 per cent gain since the beginning of 2007, of which more than 27 per cent was realised in less than 40 days.

The ADSM index closed up 42.42 points or 0.97 per cent at 4,424.63.