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Dubai shares gain most in 10 weeks

Dubai shares gain most in 10 weeks
Photo Credit: Arabianeye-Reuters

Dubai – Mubasher: The Dubai Financial Market (DFM) succeeded in closing Thursday in the green, its third straight gain, passing the level of 4,000 points and nearing 4,100 points.

The DFMGI saw its highest leap in two-and-a-half months, or since early February, soaring by 138.14 points or 3.5% and closing at 4,079.97 points, its highest level in five months, or since early December 2014.

The real estate sector’s 6.23% leap was backed by DAMAC Properties’ 11.54% surge, following the announcement of its scheduled board meeting to discuss its financials for the first quarter of 2015.

Emaar also jumped 9.4% following the approval of its shareholders for an AED 1.07 billion dividend distribution as well as the re-election of its board chairman, Mohamed Al-Abbar.

Arabtec gained 4.66%.

The banking sector added 2.22% as four banks increased, led by Dubai Islamic Bank (DIB), Emirates NBD and Ajman Bank, which grew 2.96%, 2.04% and 1.63%, respectively. Ajman Bank’s shareholders approved a 5% bonus share dividend.

The investment sector increased 0.9% as DFM Company and Gulf General Investment Co. (GGICO) advanced 5.24% and 4.62%, respectively. But a declining Gulf Finance House (GFH) cut the sector’s gains, dropping 4.90% on the backdrop of the last day of trading before its capital reduction.

The telecom sector and its stock du gained 1.60%.

Meanwhile, the insurance sector performed negatively, shedding 1.2% as Arab Insurance Group (ARIG) plunged 9.84%.

Turnover leaped to its highest level since November 2014, soaring by nearly 50% compared to Wednesday’s trades. Traded value reached AED 2.144 billion compared to yesterday’s AED 1.43 billion, while traded volume increased to 1.23 billion shares from 1.11 billion shares.

The real estate sector made up more than half of the DFM’s liquidity on Thursday, reaching AED 1.41 billion after Emaar traded for over AED 500 million and DAMAC Properties traded for AED 378 million.

UAE markets are witnessing a state of optimism, with little investor caution at present, analysts told Mubasher, thanks to positive expectations for companies’ long-awaited financial announcements, which should bring a strong push.

The DFM ended Wednesday’s session at a rise, as the DFMGI soared 112.78 points or 2.95% to 3,941.77 points, its highest gains in more than two months.

Fady Al-Ghattis, CEO of Think Financial Services, described Wednesday’s market performance as “very good,” adding that the gains were accompanied by rising trades stemming from several factors, most importantly the announcement of first quarter financials.

Market gains have been positively affected by oil prices rising towards $60 per barrel, the analyst noted.

Also, an increase in liquidity indicates growing confidence, and the relative rise in liquidity during April means that investors’ fears have declined and that geopolitical developments have become less effective on the market, he said.