Emaar powers Dubai index to best daily performance in 2017

07/02/2017 06:03 AST

Renewed buying in Emaar Properties after the insurance payout, and Dubai Islamic Bank helped Dubai index to register its best daily performance in 2017.

The Dubai Financial Market General Index closed 1.19 per cent higher at 3,691.34. Emaar Properties closed 2.74 per cent higher at Dh7.50 after the company received more than Dh1 billion in insurance claim of 2015 fire accident at one of its hotel.

Dubai Islamic Bank closed 0.98 per cent higher at Dh6.19. “The real estate companies and banks performed well are looking back in favour after witnessing highs recently, so the confidence is returning,” Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group said.

Gulf Finance House fell as much as 4 per cent weighed by company’s plan to increase capital base, but recovered later.

“GFH saw pretty solid numbers which was the main reason behind the recent rally but is it enough to sustain the move or is it time to sell the facts?” Hisham Khairy, Head of Institutional Trading at Mencorp said in a note before trading.

In other stocks, Amanat rose more than 4 per cent to end at Dh1.22. Dubai Financial Market shares closed 3.91 per cent higher at Dh1.33.

Out of a total of 35 stocks traded on the exchange, shares of 19 firms rose, while other 12 fell. The rest remained steady.

Traders will be watching out for fourth quarter results from Emaar Properties, which contributes to more than a fifth of the index. “We have good visibility on what should come through for Emaar results. I don’t see any problems. We expect strong numbers due to clearance of backlogs,” Khokhar said.

In Abu Dhabi, the general index closed 0.7 per cent higher at 4,521.58. First Gulf Bank closed 1.57 per cent higher at Dh12.95. Abu Dhabi Commercial Bank closed 1.97 per cent higher at Dh7.24. Aldar Properties closed 1.97 per cent higher at Dh2.59.

Out of a total of 29 stocks traded on the exchange, shares of 12 firms rose, while other 11 firms fell. The rest remained steady.

Good chance

“Saudi has a good chance for getting into the MSCI watchlist. With oil prices stable, and good results. we may begin to see more confidence to be built around going forward,” said Khokhar.

Saudi Arabia’s Tadawul index closed 0.23 per cent higher at 7,062.35. Qatar exchange index closed 0.13 per cent higher at 10,609.64. The Muscat MSM 30 index closed 0.11 per cent higher at 5,814.71. The Kuwait stock exchange index closed 14 points higher at 6,701.73. The Bahrain exchange index closed at 1,300.89.

Gulfnews