Welcome to GulfBase Live Support
UAE shares advanced Monday on rising investor confidence, with buyers hopeful that a stream of financial stimulus measures will begin to revive faltering economies.
Investment company Aabar Investment paced gainers in Abu Dhabi, rising 3.98 per cent to Dh1.79 after Aabar said that Abu Dhabi’s government-owned International Petroleum Investment Co. had completed an acquisition of Aabar convertible bonds worth Dh5.2 billion. This acquisition came one day after Abu Dhabi-based Aabar acquired a 9.1 per cent stake in Daimler AG, making it the biggest shareholder in the struggling German car-maker.
The Dubai Financial Market benchmark rose 1.07 per cent to 1,558.00, led by property issues, which edged up 3.46 per cent. The main index of the Abu Dhabi Securities Exchange inched up 0.41 per cent to 2,424.80.
“There is increased concurrence among investors and analysts that current stimulus and quantitative easing measures in Western economies will start to deliver results and spark the first glimmers of recovery this year,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes.
Investors now have a two-pronged rationale for buying, said Wakeman.
“The first is the ongoing speculation about stimulus and cash injections on a global and domestic level, and the second is first quarter results.”
The Dubai bourse will be testing a new resistance level of between 1560 and 1580, said Hesham Bakry, institutional sales manager at Al Futtaim HC Securities.
“An upward channel in the coming days will confirm that investor confidence is improving and investors are more keen on taking risks,” he said.
Index heavyweight Emaar Properties jumped 4.78 per cent to Dh2.19. Shares in Sharjah-based budget airline Air Arabia edged up 5.15 per cent to Dh1.02.
“Both stocks lagged in recent market rallies and are playing catch-up, “ Bakry said. Arabtec Holding, the country’s biggest construction company, edged up 1.21 per cent to Dh1.66. The company said earlier it was ahead of schedule on its Dh638 million property project in Dubai Marina. The Commercial Bank of Dubai added 2.35 per cent to Dh4.35.
Abu Dhabi stocks also showed strength, with Arkan Building Materials Co. rising 9.85 per cent to Dh5.02.
International Petroleum Investment’s conversion of Aabar convertible bonds into ordinary shares, at Dh3 per share, raises its stake in Aabar to 71 per cent. Abu Dhabi National Energy Co. jumped 6.51 per cent to Dh1.80 on follow-through interest after the company said on Sunday it had paid $320 million for half of Marubeni Corp.’s Carribbean power portfolio. ?
As Arabian Gulf nations march inexorably forward towards economic diversification, one sector is receiving particular attention.
Manufacturing is a growth-focus for several GCC governments
Abu Dhabi Securities Exchange (ADX), which has a market capitalisation exceeding Dh400 billion, said on Tuesday it had launched technical short-selling (TSS) services as part of efforts to boost wani
Emaar Properties and Dubai Islamic Bank (DIB) extended losses on Tuesday, pushing the Dubai Financial Market (DFM) index into negative territory. The DFM General Index shed 0.39 per cent to close at
Abu Dhabi Securities Exchange, (ADX), on Tuesday announced the launch of its latest investment service ‘Technical Short Selling’ (TSS), an addition to the existing suite of services and products prov
The Gulf Today
The development is significant in the light of the growing importance of the region as an attractive investment destination for international investors seeking exposure to high growth emerging market