Dubai share index closes at more than five-year high

Dubai: Dubai shares rose on Sunday to register their best close in more than five years as optimism surrounding new IPOs (initial public offerings) and hopes of a continuation of profit growth in the first quarter drove investor sentiment.

Property, investment bank and insurance stocks lifted Dubai’s benchmark stock measure, DFM General Index, 1.32 per cent higher to 4438.35 — its highest close since September 2008. Dubai is the world’s best performing market this year, up 33.21 per cent.

Among the most active stocks in terms of traded value, Union Properties, Arabtec, Drake and Scull and Emaar Properties added 5.96 per cent, 0.67 per cent, 2.35 per cent and 1.32 per cent respectively.

Islamic Arab Insurance (Salama), Takaful House or Dartakaful, Takaful Emarat and Dubai Islamic Insurance (Aman) were the top four gainers on the day. Salam soared 14.85 per cent to Dh1.16 and Dartakaful jumped 14.71 per cent to Dh1.17.

The total volume traded in Dubai stood at 721.60 million, which were valued at Dh1.49 billion. Of the 30 stocks traded, 20 increased, six declined and four remained unchanged.

“The sentiment is very good in the market,” said Sebastien Henin, head of asset management at Abu Dhabi-based The National Investor (TNI). “Investors are expecting good surprises from listed companies in the first quarter of the year with earnings above consensus.

“At the same time, investors are positioning for the MSCI inclusion which will happen early June. Moreover, we have more IPOs coming to the market, a very positive sign which might attract more money to the stock-exchange. As long as the situation in Ukraine doesn’t become out of control, markets should continue their uptrend.”

Abu Dhabi

In Abu Dhabi, the gauge ADX Securities Index climbed 0.94 per cent to 4900.86. Services and consumer staples sectors added the most, gaining 3.70 per cent and 3.18 per cent respectively.

Of the 39 stocks traded, 22 advanced, 12 retreated and five were flat.