22/06/2015 01:46 AST
Dubai index jumped nearly 1 per cent on Sunday led by gains in Arabtec and other real estate firms.
The Dubai Financial Market General Index ended 0.80 per cent higher at 4,096.18, with volumes in terms of value pegged at Dh703 million.
“Valuations in the UAE are quite cheap. You need to be buying UAE and being a little bit cautious on Saudi Arabia,” said Saleem Khokhar, Executive Director and head of fund management at National Bank of Abu Dhabi.
Arabtec jumped 3.86 per cent higher to end at Dh2.69, while Union Properties ended 2.40 per cent higher at Dh1.28. Damac Properties ended 1.66 per cent higher at Dh3.07.
Amlak Finance ended 14.80 per cent higher to be at Dh2.25. Out of a total of 34 stocks traded on the exchange, shares of 21 companies rose, while shares of 14 fell.
UAE stocks are 10-11 times of Price to Earnings multiple, compared to 15 times in Saudi Arabia, Khokhar said, adding that volatility would play out in Dubai, though there is a potential for further upside.
Saudi declines
Saudi stocks declined, weighed by falling crude prices, and lower than expected flows from foreign investors after its opening.
“There is a little bit of disappointment coming in from expected flows from foreign institutions,” said Khokhar.
The Saudi Tadawul All share TASI index ended 1.7 per cent lower at 9,344.11.
“The stocks in Saudi Arabia are not cheap on valuation grounds, and they are fairly priced, so there is a potential for it to go a little bit lower,” Khokhar said.
Alinma Bank ended 2.85 per cent lower at 23.20 Saudi riyals, while Saudi Basic Industries Corp ended 2 per cent lower at 100.50 riyals.
Slow trading
“It is going to be a trade with low liquidity going into Ramadan. We are already seeing lower liquidity and we expect that to continue,” Khokhar added.
On Sunday, shares worth about Dh700 million were traded, at least half of the average trading volumes.
In Abu Dhabi, the general index ended 0.40 per cent higher at 4,590.12.
First Gulf Bank ended 0.67 per cent higher at Dh15.10, while Emirates Telecommunication Corp ended 1.72 per cent higher at Dh11.80. Aldar Properties ended 0.37 per cent higher at Dh2.72.
Elsewhere in Gulf, Qatar Exchange Index ended 1.12 per cent higher at 12,031.15, while Muscat Securities MSM 30 index ended 0.06 per cent lower at 6,451.56. Kuwait Stock Exchange index ended 0.39 per cent lower at 6,213. Bahrain Bourse All Share index ended 0.06 per cent lower at 1,366.09.
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