DFM jumps nearly 1% as DIB helps ahead of rights

25/05/2016 05:23 AST

Dubai Islamic Bank (DIB) and Arabtec propelled the Dubai index higher on Tuesday. Saudi Arabia’s Tadawul All Share Index (Tasi) gained some ground after 3 per cent fall.

The Dubai Financial Market General Index (DFMGI) closed nearly 1 per cent higher at 3,247.60. “Until we see a few more sessions like we saw on Tuesday and Monday, it appears UAE stocks are enjoying a bit of the proverbial dead-cat bounce,” Sanyalaksna Manibhandu, director of Research at the National Bank of Abu Dhabi Securities said.

Arabtec shares ended 1.43 per cent higher at Dh1.42, while Dubai Islamic Bank ended more than 3 per cent higher at Dh5.67 as Tuesday was the last day for trading in DIB shares cum rights.

The record date for eligibility in the DIB rights is May 26. Shareholders are being offered one new share for every four shares they hold as at the close of Tuesday.

Drake and Scull ended more than 5 per cent higher at Dh0.547, while Shuaa Capital ended more than 3 per cent at Dh0.679.

Out of a total of 34 stocks traded on the exchange, the shares of 24 companies advanced while those of seven retreated.

The Abu Dhabi Securities Exchange (ADX) General Index closed 0.18 per cent higher at 4,206.08.

“Unless there is some new news on one of the big stocks on the ADX, we could see the ADI continue to lag the DFMGI going into Ramadan,” Manibhandu said.

The Dubai index is up more than 4 per cent so far in the year while the ADX is down nearly 2 per cent since January.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.53 per cent higher at 6,459. “Saudi risk assets, including equity assets, are suffering from concerns some investors have with the durability of the Saudi riyal peg to the US dollar,” Manibhandu added.

He urged investors to watch out for the upcoming Opec meeting, which is widely expected to maintain a status quo on production, and also the US Federal Reserve meeting in mid-June.

“Should Opec ministers surprise the crude market on or around 2 June, equities in the GCC will react accordingly,” Manibhandu said.

The Qatar Exchange Index ended 0.17 per cent lower at 9,664.85.

Gulfnews