Dubai: When the rest of the market is turning southward, these shares are proving their mettle.
The Abu Dhabi Financial Group backed Gulf Navigation and Salama Insurance are the new darlings of traders, much like what happened with GFH, Shuaa, Dana Gas and Eshraq Properties, all of which witnessed swift rise in share prices.
GulfNav has risen by 29 per cent since September, compared to a 0.57 per cent fall for the Dubai index. Salama Insurance had a rally of 81 per cent from August 12, compared to a 3.6 per cent fall on the wider index in the same time period.
These shares have one thing in common: they are backed by Abu Dhabi Financial Group. On October 23, Goldilocks Investments, which is controlled by ADFG, bought a 4.35 per cent stake in Gulf Navigation. Shuaa Capital, another company controlled by ADFG, bought 4.6 per cent in the same entity. ADFG along with Goldilocks Investments hold about 21 per cent stake in Salama Insurance.
“Salama and Gulf Navigation both saw direct deals through DFM and the players that have entered or expanded their stakes are big names such as ADFG, Goldilocks etc,” said Issam Kassabieh, senior financial analyst at Menacorp. “The following is being taken as an indicator for investors, and thus speculators are following the movement so that they can make a quick buck.”
On Thursday, GulfNav closed 2.78 per cent higher to be at Dh1.11, contributing to 12 per cent of total traded volume. Salama was at Dh0.706, up 1.15 per cent. The Dubai index, however, recovered from its early lows to end flat.