The DFM closed higher by 0.35 per cent and ADX ended in the plus by 0.11 per cent.
On the charts, DFM and ADX are trading above their 200-day simple moving average (SMA) and consolidating in a narrow range for the past one month. The 200-day SMA is widely considered as a barometer of general market sentiments by traders.
The ADX trading range for the past one month has been 4,450-4,550 while for DFM it is 2,200-2,300. Positive sentiments are surfacing as US-China tensions show no signs of worsening and on expectations the US Federal Reserve will continue its dovish monetary policy stance this week.
Arabtec shares gained 1.33 per cent on news that Target Engineering Construction Company, a wholly-owned subsidiary of Arabtec Holding, was awarded a contract worth Dh403.8 million in Abu Dhabi. Its peers, Damac and Union Properties, rallied 6.51 per cent and 1.35 per cent respectively.
Feel good is back
DXB Entertainment rose 2.34 per cent after it informed the exchange that it will reopen Motiongate Dubai and it’s family resort, Lapita, on September 23. The reopening is a sign that Dubai is gradually returning to normalcy.
BH Mubasher has clarified that its turnaround is on track and is planning to expand into new categories like asset management. The company, which has applied a license for the same, posted profits in the first six months for a sharp turnaround from the loss last year. The company is already licensed as a market maker by DFM to improve the liquidity of listed companies.
Consign to the past
The economic data recently released – such as from IHS Markit - have been disappointing for UAE. Nevertheless, there are lot of reasons to believe that the worst is in the past in economic terms.
- Vijay Valecha is Chief Investment Officer at Century Financial.
