Dubai index nears 3,500 level as property majors gain
By Siddesh Suresh Mayenkar Senior Reporter
The Dubai index rose on Wednesday, extending gains for the another session to reach the keenly watched level of 3,500 on buying in shares of property companies.
The Dubai Financial Market General index closed 1.59 per cent higher at 3,494.44, the biggest rise in a few weeks. The index hit a high of 3,500.70, the highest level since April 12.
“The short-term bullish phase in Dubai index that started earlier last week might be resuming,” Almena Financial Brokers said in a technical note.The Dubai index has been an outperformed in the region with 5.96 per cent of returns so far in the year.
Property stocks witnessed buying ahead of second quarter results. Arabtec closed 3.51 per cent higher at Dh3.54. Damac closed more than 10 per cent higher at Dh3.82. Union Properties closed 1.92 per cent higher at Dh0.955. Emaar Properties closed 1 per cent higher at Dh7.86.In other stocks, Gulf Finance House gained 1.4 per cent higher at Dh2.17, while Dubai Financial Marketshares closed 1.7 per cent higher at Dh1.17.
“Some stocks are still showing potential its just a matter of time for them to move like Union Properties, Deyaar, Al Madina and Waha Capital,” Hisham Khairy, Head of Institutional Trading at Almena Financial Brokers.
The Abu Dhabi Securities Exchange general index closed at 4,409.53, up 0.02 per cent.
“The medium-term outlook is bearish and this is highlighted by the fact that the market has been carving out lower peaks and lower toughs since February, and any break below 4,350 would amplify the case for further losses,” Almena Financial Brokers’s note said.
Elsewhere in the region, Saudi Arabia’s Tadawul index closed 0.84 per cent higher at 7,306.58. The Qatar exchange index closed 2.77 per cent higher at 9,280.38.
The Muscat MSM 30 index closed 0.96 per cent lower at 5,170.23.