Dubai index recovers, Saudi’s Tadawul ends down

11/05/2015 00:55 AST

Dubai index recovered further from its lowest level in three weeks on Sunday after strong performance in US markets on Friday amid an overall weekly recovery in crude oil.

The Dubai Financial Market (DFM) General Index ended 1.07 per cent higher at 4,147.28, after hitting a low at around 4,050 last week, a level last seen on April 19.

“Sentiment are still positive in Dubai after strong employment numbers,” said Muhammad Shabbir, head of equity funds & portfolios at Rasmala Investment Bank.

Gulf Finance House, which was the top stock in terms of activity on the exchange, ended 2.68 per cent higher at Dh0.843. Al Salam Bank ended 14.50 per cent higher at Dh1.50.

Emaar Properties ended 2.30 per cent higher at Dh7.99, while Arabtec ended 3.82 per cent higher at Dh2.72, after the appointment of a new chairman last week.

Abu Dhabi-based utility provider, National Central Cooling Co., jumped 9.29 per cent to end at Dh1.53 on the DFM, after it sought a shareholder approval to buy back 28 per cent of the bonds held by its largest shareholder Mubadala.

Out of a total of 36 shares traded on the DFM, shares of 26 companies rose, while shares of another 6 fell.



Positioning for MSCI

Shares of Union National Bank and Abu Dhabi Commercial Bank have been witnessing heightened activity on speculation of their inclusion in the MSCI index. “Markets are already positioning themselves for the MSCI re-weightage,” said Shabbir, adding “I don’t think it is a big factor for the market.”

The MSCI would review the market again, and stocks that form a part of the index. The UAE indices along with Qatar index were upgraded to emerging markets from frontier markets last year.

Abu Dhabi Securities Exchange General Index ended 0.46 per cent higher at 4,575.78. Aldar Properties ended at Dh2.73, up more than 3 per cent after the company said it plans to sell plot of land on an island.



Pain in Saudi

“Saudi market was down as oil prices were lower. My view is that Saudi market is should soften more after weeks of gains. It would be difficult for Saudi to hold this ground,” Shabbir said.

Saudi’s Tadawul All Share TASI index ended 0.08 per cent lower to 9,710.52.

On Friday, brent oil posted its first weekly loss in a month as the market fretted again about global oversupply while US crude rose for an eighth straight week, helped by jobs growth data and the first storm of the hurricane season forming.

Gulf News