Dubai: Traders were left brimming with confidence after the Dubai Financial Market (DFM) general index breached the critical 2,570 level on Wednesday.

Advancing 2.58 per cent, the sharpest gain so far this year, the index closed at a two-month high at 2,632.08, a level last seen in early December.

Prior to this, the index had attempted to breach 2,570 thrice since December.

The surge prompted heightened interest in select property stocks such as Emaar Properties, Emaar Malls, Aldar Properties, which all posted better-than-expected fourth-quarter results.

Dubai index
Image Credit: Gulf News

At least Dh343 million changed hands on Wednesday, three times the daily average of Dh98.3 million in trade.

“Investors have been quite aggressive while selling, discounting stock prices further than they deserve to be, which would explain the sudden buying momentum on a number of equities,” Issam Kassabieh, senior financial analyst at Menacorp, said in a note.

“There is clearly some accumulation taking place at thin volumes, which indicated cautious and selective buying. As the market moves closer to AGM [annual general meeting] dates and ex-dividend dates, we could see a correction triggered by a simple ex-dividend adjusted price.”

The Abu Dhabi Securities Exchange (ADX) general index rose 0.51 per cent to close at 5,060.89.

Banking stocks across both bourses also saw significant trade interest, with Abu Dhabi Commercial Bank (ADCB) and Abu Dhabi Islamic Bank (ADIB) all touching their highest levels in year.

ADCB rose 5.9 per cent to close at Dh9.7 while ADIB was up 0.92 per cent to close at Dh4.40.

Other banking shares such Dubai Islamic Bank (DIB) and Emirates NBD also ended the session in positive territory.

DIB closed 2.18 per cent higher at Dh5.16 while Emirates NBD was up 0.97 per cent higher to close at Dh10.40.

Other stocks such as Dubai Investments and Gulf Finance House also rose, advancing 2.5 per cent to Dh1.23 and 0.96 per cent to Dh0.95, respectively.

“A recovery is expected in Dubai Investments towards the trendline resistance of Dh1.30 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities (FABS), said in a note.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index closed 0.59 per cent higher at 8,567.24.