UAE stock markets extended gains in early trade on Tuesday as did other Gulf stocks, continuing to take cues from global markets. The investors remain generally bullish on renewed hopes about the US stimulus package getting past lawmakers, while the European Union secured pledges of increased vaccine shipments.
Dubai Financial Market traded 1.2 per cent higher adding to its hefty gains on Monday. The rally triggered gains in all sectors, with banking and real estate getting the lion's share. Emaar Properties made a further advance of 2.6 per cent after posting this year's second best single-day performance on Monday. Damac climbed 1.5 per cent, while Emaar Malls eked out 1.6 per cent.
Dubai's top lender Emirates NBD gained 1.3 per cent for a second consecutive day of rise, while Dubai Islamic Bank was up 1 per cent. The telco du surged 2.4 per cent. The stock is already trading 19 per cent up for the year after it raised the foreign ownership limit to 49 per cent.
Abu Dhabi Securities Exchange traded 0.7 per cent higher on the back of wider gains. Heavyweight First Abu Dhabi Bank was up 0.7 per cent and Abu Dhabi Commercial Bank 0.9 per cent. Abu Dhabi Islamic Bank and Bank of Sharjah also headed higher, by 0.4 and 1.6 per cent, respectively.
Aldar Properties gained 2.8 per cent and 0.5 per cent.
Clearly, investors are overjoyed as the newly installed Biden administration pushed ahead with a $1.9 trillion aid plan aimed at getting the world's largest economy out of the devastating effects of the coronavirus. Democrat lawmakers in the Senate and House of Representatives came together to place the entire package for a joint vote brushing off the Republicans demand to downsize the spending plan.
However, 2020 financials announced to date dragged down Oman's 30-company index, by 0.6 per cent, with Bank Dhofar shedding 2 per cent and Ahli Bank slipping 2.6 per cent.