Dubai: The Dubai Financial Market general index had been underperforming since last year despite analysts calling it a value buy. But bulls, which were in slumber, have awaken suddenly and are gaining an upper hand, making it the best performing regional markets.
Dubai index breached its 100-day moving average, a technical indicator suggesting bullish outlook, after gaining for a second straight week as traders took positions in the property and other stocks.
The Dubai index has gained 7.4 per cent so far in February, outperforming the Abu Dhabi index, which gained more than 2 per cent. The Dubai index gained 1.33 per cent on Sunday to end at 2,668.64.
“We felt early this year that this was Dubai’s year. Results from Emaar Properties especially pre-sales ignited the rally in Dubai stocks,” Vrajesh Bhandari, senior portfolio manager at Al Mal Capital told Gulf News.
Emaar Properties continued to gain further. Emaar Properties closed 3.22 per cent higher at Dh4.81. The bellwether was most active stock in trade, contributing 27 per cent to the total traded value of Dh271 million.
“I feel that Emaar stocks may consolidate at current levels before resuming its upward trend,” Bhandari said. The stock has gained more than 20 per cent in the past ywo weeks. The Abu Dhabi Securities Exchange general index closed 0.82 per cent higher at 5,139.67.