Dubai:

The share market in Dubai on Sunday surged to a near three-year high on optimism in the recovery of its real estate sector which was battered in the wake of the global financial crisis that started in 2008. The Dubai Financial Market (DFM) index closed almost 1 per cent higher with real estate major Emaar driving the rally.

The bullish market sentiments also prompted buying in Tabreed, DFM, Arabtec and Union Properties’ stocks, all of which surged as gainers outpaced the losers on the market.

The DFM index closed 0.95 per cent higher at 1,791.73. The market sentiment is currently being supported by strong fundamentals of the local blue-chip stocks and anticipation of robust fiscal fourth-quarter earnings as well as optimism surrounding the continued global economic recovery which would encourage greater foreign money inflows.

Market experts expect the current bull run to sustain on renewed buying interest of foreign as well as retain investors who see potential in an oversold market amid some attractive share valuations.

Overall, around 550.55 million shares, cumulatively worth about Dh655.22 million changed hands on the market. Emaar’s shares cumulatively valued at around Dh126.23 million were traded, its stock closing 4.12 per cent higher at Dh4.30. Tabreed’s shares gained 2.42 per cent to close at Dh1.69.

Of the 29 company stocks traded on the market, 13 rose, while 12 fell and 4 closed unchanged. The day’s top gainer was Union Properties, its stock closing 6.33 per cent higher at Dh0.470. Oman Insurance was the day’s main loser, its stock closing 9.93 per cent lower at Dh6.08. Shares of Emaar were the most traded by value while Gulf Finance House’ shares were the most traded by volume.

By Himendra Mohan Kumar

Staff Reporter

Abu Dhabi

The Abu Dhabi Securities Exchange (ADX) general index rose 0.58 per cent on Sunday on hopes the country’s real estate market was on its way to recovery post the global financial crisis. There was an increase in the participation of foreign investors on the market.

The index’s gain is an indication of consolidation taking place in the market ahead of a potential rally that would likely take it past the 2,800 mark in the coming trading sessions.

The market’s rise came from investors’ buying interest in banking, real estate, energy and telecommunication stocks with only the insurance companies going into a partial retreat.

The market since the beginning of 2013 has been witness to a bull run, which took the index past 1,700 as global investors’ immediate fears on the US going over the fiscal cliff were allayed. The ADX general index closed at 2,782 with more liquidity set to get pumped in during the coming days.

The cumulative value of share transactions on the market yesterday, however, was quite low compared to some of the trading days last week, at about Dh104 million.

Telecommunications major Etisalat’s stock, which has a high weightage on the index, closed 0.11 per cent higher yesterday to close at Dh9.40. Around 124.9 million shares, altogether worth about Dh104.42 million were traded on the market. Of the 29 company stocks traded, 15 advanced, while 10 fell and 4 closed unchanged.

Any news on the potential merger of the two Abu Dhabi real estate majors — Aldar Properties and Sorouh Real Estate will be a major catalyst for the market, according to market experts.

The top gainer on the Abu Dhabi market was Asmak, its shares gaining 14.63 per cent to close at Dh11.75. NBADCN0316 was the top loser, the stock ending the day 9.68 per cent lower at Dh84. The shares of RAK Properties were the most traded in terms of value as well as volume.