Most Middle East markets fell yesterday as retreating global stocks and weaker oil prices sapped sentiment, but Dubai and Oman bucked the trend to set milestone closing highs.
Dubai’s benchmark rose 1.8 percent to hit a new six-month closing high - its eighth straight rise. Trading volumes topped 1 billion shares for the third time this week and only the fourth occasion since July 1, 2008.
Oman rose 0.6 percent to 5,719 points, its highest close since December 22.
US and Asian stocks fell before Gulf markets opened, dragged lower by disappointing US employment data. A weak dollar helped oil recoup its early losses to climb above $67 a barrel, but below Tuesday’s seven-month high of $69.05.
Speaking about Dubai, Rami Sidani, Schroders Middle East head of investment said: “There has been a strong inflow of international funds, and foreign trading as a percentage of the market is close to the level of before the crisis.
“Large local institutions have been sitting on a lot of cash and have now been encouraged to come back in.”
Property developer Deyaar was the most active stock, accounting for more than a sixth of all index trading, and it jumped 11.3 percent after saying it would hand over four projects in June.
Dubai Financial Market extended its gains to 43 percent since May 25 as investors expect rising trading volumes to translate into bigger profits. Credit Suisse raised its outlook on the stock to ‘outperform’ and almost doubled the price target to Dh2.2. It closed at Dh1.96.
“We are seeing major re-pricing in Dubai after it fell to exaggerated levels,” said Sidani. “This is mostly led by an improvement in risk appetite (among) ... domestic and international investors.”
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