By: Thabet Shehta
Dubai – Mubasher: The Dubai Financial Market (DFM) ended Thursday at a record high, as the index saw its highest gains in 10 years, after prices dropped to highly attractive levels. Today’s gains were supported by a rise in oil prices and in the Saudi stock market.
The market’s general index (DFMGI) soared by 12.98% or 393.70 points to 3426.7 points, the DFM’s second gain in December against 10 sessions of losses.
Analysts had expected some investment portfolios to begin buying major stocks on the DFM, particularly those in the real estate sector, which is similar to what happened on the Abu Dhabi Securities Exchange (ADX) on Wednesday.
The main and most important incentives that supported the market on Thursday were the stable oil prices and the rise in the Saudi market, Aldar Securities General Manager Kefah Moharama told Mubasher, adding that the previous declines had brought stocks to highly attractive levels, prompting positivity.
The DFM ended the week on high turnover amounting to AED 1.87 billion against AED 1.1 billion on Wednesday, as 15,341 transactions were executed.
All of the DFM’s 33 stocks ended the session in the green led by Arabtec, Emaar Properties, Dubai Islamic Bank (DIB), du and Emaar Malls, of which collectively surged by 15% or near that figure.
On the sectors level, the services sector topped gainers, surging by 15%, followed by the real estate, telecoms, the investments, and the banking sector which gained 14.96%, 14.86% and 14.8% and 11.56%, respectively.
Commenting on the market’s performance, Trading Manager at Al Ansar Securities Iyad Al Bareeqy told Mubasher, that rising oil prices added to some gains in Gulf markets on Wednesday have restored some investor confidence in the markets.
Air Arabia saw the lowest gains, adding 5.5% to AED 1.530; the stock had succeeded in holding strong during the losses that hit the market.
Ehab Rashad, CEO of MubasherTrade – Egypt, stated that the strong gains seen on UAE markets on Thursday come as a normal reaction to the previous declines.
Oil prices holding well in this recent period has helped market rebound, Rashad told Mubasher in a statement, adding that he expects this strong leap to continue next week.
Meanwhile, Moharama said that it will be hard to predict what will happen with this strong rebound in UAE markets as it will be greatly linked to the movement of oil prices.
By: Nada Adel Sobhi
Photo Credit: Arabianeye-Reuters
