Dubai stocks start second quarter on firm footing

04/04/2017 05:34 AST

Dubai stocks started April on a firm footing, a trend likely to continue in a historically strong month, analysts say.

The Dubai Financial Market General Index (DFMGI) rose extending gains for a fourth session, to reach its highest level in nearly month as traders preferred to come back to the market, resorting to bargain buying.

The DFMGI closed 1.37 per cent higher at 3,539.33, after gaining 1.3 per cent in the previous three sessions. Traded value jumped to Dh466 million compared to Dh323 million in the previous session.

“It’s mainly the April effect ahead of the first quarter results. This rally would be sustainable in the next couple of weeks,” Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz said.

April has been one of the best performing months in the past five years, which ranges between 5-14 per cent from the lowest point in March to highest point of April on index level, according to Shurrab.

Union Properties closed 2.51 per cent higher at Dh1.02. Arabtec closed more than 2 per cent higher at Dh0.937. DXB Entertainments closed 3.96 per cent higher at Dh1.05. Emaar Properties closed 1.8 per cent higher at Dh7.35.

Out of a total of 33 stocks traded on the exchange, shares of 25 firms rose, while shares of 5 others fell. The rest remained steady.

Catalyst?“The catalyst was the anticipation of liquidity coming up. Most of the prices are attractive in terms of Price to Earnings. Market sentiment is positive, and triggering a surge in small caps,” Shurrab said.

The Dubai index has gained more than 11 per cent in the past one year. “Going ahead, main stocks would be big caps with higher weightage on the index,” Shurrab said.

The Abu Dhabi Securities Exchange General Index closed 0.38 per cent higher at 4,466.64. “Taqa restructuring has been taken positively taken by the shareholders,” Shurrab said. Taqa shares closed 9.62 per cent higher at Dh0.57, while Aldar Properties closed 2.23 per cent higher at Dh2.29. Etisalat closed 0.84 per cent higher at Dh17.95. Dana Gas closed 4.65 per cent higher at Dh0.45. Eshraq Properties closed 1.89 per cent higher at Dh1.08.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.32 per cent lower at 6,967.98. The parallel index or Nomu closed 0.34 per cent higher at 5,032.84. The Qatar exchange index closed 0.52 per cent lower at 10,344.08. The Muscat MSM 30 index closed more than 1 per cent higher at 5,596.670.

Gulfnews