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UAE shares extend rally amid weak turnover

UAE shares extend rally amid weak turnover

Stock markets in the United Arab Emirates kept rally alive Thursday, buoyed by blue-chips stocks in property and banking sectors, but turnover in both markets was below average.

The Dubai benchmark stock index, DFMGI, ticked 0.72% to 4762.21 points, but is still off six year-high, it touched last Thursday.

“Dubai Islamic Bank contributed most to the uptrend phase in the market Thursday, after the lender raised foreign ownership limits to 25%,” said Nedal Khouly, head of gulf research in Nemma Investment.

Shares in Dubai Islamic Bank, the second biggest relative weight in the index, soared 3.17%, lifting the banking sector index 0.67%, while Emirates NBD lost 3.19%, limiting the sector’s gain.

Dubai Islamic Bank announced on 15 April, that Foreign Ownership Limit allowed for the bank has been increased by an additional 10% post completion of all regulatory formalities.

 The new FOL for the bank stands at 25%, which will significantly enhance the liquidity available to foreign investors.

DIB stated that it was consistently under pressure from global investors to create additional room to allow investment by interested parties from across the globe.

“We could see the market extending rally next Sunday amid new fresh catalysts. Emaar could serve as the main booster to the index next session,” said Nabil Hyder, head of gulf research in Al madina Investment.

The property sector index gained 0.96% on the back of Arabtec which ticked up 0.72%, while heavyweight Emaar closed flat.

Deyyar was the most active by value and volume, with its share’s price advancing 3.52%.

Turnover hit AED 1.26 billion, while volume stood at 528.15 million shares.

Elsewhere, shares on the Abu Dhabi bourse ended in the green area Thursday, bolstered by blue-chips stocks in telecom, property, and banking sectors.

ADX, the main benchmark stock index, climbed 0.49% to 5156.65 points, but is still also off multi-year high, hit last Thursday.

“Banks stocks served as the most contributor to the market rally in Abu Dhabi Thursday amid strong showing for other large-cap stocks in the property and banking sector,” said  Ramy Rashad, a senior technical analyst at Mubasher Financial.

The banking sector index surged 0.68%, with heavyweights First Gulf Bank and National Bank of Abu Dhabi advancing 0.57% and 1% in a row.

Meanwhile, shares in Aldar jumped 1.2%, lifting the real estate sector index the same, while Eshraq was the most active by value and volume, with its stock’s price gaining 2.67%.

Heavyweight Etisalat served as another boost reason, closing up 0.44%,

“We could see a strong session next Sunday with more cash-ins in the market,” Rashad added.

Turnover stood at AED 880.16 million, while volume came in 300.22 million shares.