UAE stocks rise on firm sentiment

10/01/2017 07:38 AST

UAE shares finished in positive territory once again yesterday on the prospect of improved economic conditions in the new year.

Saudi shares meanwhile fell on reports of further government cost-saving measures. The Dubai Financial Market General Index drifted lower in morning trade, before recovering to finish up 0.8 per cent at 3,721.28, its seventh straight session of gains.

"We’re still a couple of weeks ahead of earnings releases in the UAE and there hasn’t been any real scaremongering thus far, so people are happy to participate in the ongoing rally," said Julian Bruce, the head of institutional trading at EFG-Hermes in Dubai.

"Retail investors have been happy to be the torchbearers, trading in smaller and midcap stocks on fresh margins in the new year, which was complemented by western institutions buying into large cap names."

Emaar Properties and Dubai Islamic Bank led big-name gains, each closing up 1.5 per cent. Emirates NBD and Air Arabia also rose. Drake & Scull International dominated retail trading with over 282 million shares changing hands. The construction firm’s shares closed up 5.1 per cent at 53.2 fils.

Banking stocks once again were the best performers on Abu Dhabi’s headline index, which closed up 0.9 per cent at 4,663.69.

FGB and NBAD led the way with gains of 0.8 per cent and 2.4 per cent, with UNB and ADCB not far behind.

Saudi shares meanwhile fell sharply for a second straight day on news of plans to cancel about US$20 billion worth of contracts. The Tadawul ended the day 0.8 per cent lower at 7,081.71, dragged lower by Savola and Etihad Etisalat.

The National