Dubai: The UAE stock markets rose on Wednesday as European and Asian equities shook off concerns on political tensions a day after North Korea fired a missile over Japan.

The Dubai Financial Market (DFM) index gained 0.74 per cent to end at 3,637.55, while the Abu Dhabi Securities Exchange (ADX) general index inched up 0.11 per cent to 4,468.41.

Trade values in the UAE were also higher compared to the last few trade sessions, with nearly Dh216 million traded on the DFM, a 50 per cent jump over the Dh144 million traded a day earlier.

“It’s the last trading day of the month and the last day of the week, and we saw a focus on the blue chips in the market, the likes of Emaar, Damac, Aldar, and ADCB (Abu Dhabi Commercial Bank). The turnover is still low, but it’s better than what we’ve been seeing over the past couple of days, and this was mainly driven by end-of-month momentum,” said Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz.

Momentum

Emaar share prices gained 0.47 per cent, with the stock being the most actively traded in terms of value on DFM. Damac jumped 3.32 per cent, as Dubai Islamic Bank rose 0.83 per cent, and GFH advanced 1.12 per cent.

“I think, going into September, there’s a lot of positive momentum and catalysts to help the market, the likes of the strengthening euro against the dollar, and the strengthening price of commodities. Company-specific catalysts like the IPO [Initial Public Offering] for Emaar will take traction and should help liquidity in the market come back,” Shurrab said.

Emaar is expected to list part of its real estate business, the company announced in early June.

The higher momentum in the UAE’s markets on Wednesday followed a sea of red across international markets a day earlier especially across Europe where stocks were also weighed down by a strengthening euro. The euro on Tuesday reached $1.20 (Dh4.40), the currency’s highest level since January 2015.

As US markets opened on Tuesday, however, investors on that side of the pond had a calmer approach, with the country’s main indices ending the day nearly flat, fuelling some buying activity on Wednesday in other parts of the world.