Insurance shares make comeback on Dubai bourse

09/02/2017 05:43 AST

Insurance shares witnessed action in trade on Wednesday, as Emaar Properties continued its gaining streak.

The Dubai Financial Market General Index closed 0.20 per cent higher at 3,725.93. Insurance stocks contributed to more than 11 per cent of the total traded shares of 659 million. Aman closed 9 per cent higher at Dh1.090, while Takaful Emarat closed more than 2 per cent lower at Dh2.59. Salama or Islamic Arab Insurance closed more than 4.5 per cent to end at Dh0.620.

HITS Telecom surged, recording highest volume since January 23, when volumes were at 119 million shares. HITS Telecom closed 13.29 per cent higher at Dh0.827. Gulf Finance House closed 2.46 per cent lower at Dh2.77.

Out of a total of 36 stocks traded on the exchange, shares of 22 firms rose, while other 11 firms fell.

The Abu Dhabi Securities Exchange General index closed 0.64 per cent higher at 4,574.20. First Gulf Bank closed 1.53 per cent higher at Dh13.3. National Bank of Abu Dhabi Securities closed 1.01 per cent higher at Dh10. Union Cement closed 8.4 per cent higher at Dh1.29. Elsewhere in the region, the Tadawul index closed 1.01 per cent lower at 6,967.40. The Qatar exchange index closed 0.65 per cent higher at 10,653.83.

Positive sentiment:

In all, so far in the year, the Dubai index may have traded in a range, but it is on a positive trajectory.

“The market has started better than last year, but we are still in a range on DFM of 3,600-3,900, an which is higher than that of last year of 3,200-3,580,” Mohammad Ali Yasin, managing director at National Bank of Abu Dhabi Securities said.

“It’s a positive range, and this will continue through the earning and dividend season. That will continue until we see dividend payments and part of that cash will come back in the capital markets,” Yasin said.

The Dubai index gained more than 25 per cent last year, and was the best performer in the region.

Going ahead, the first quarter results will be the next catalyst, and traders may look at MSCI rebalancing.

“We need the bluechips to move to break the current price range, The speculative stocks has very limited impact on the overall index,” Yasin added.

Gulfnews