(MENAFN- Khaleej Times) The DFM General Index rose 4.
The DFM general Index rose 4.4 per cent to 4593.57 points the highest close since June 15. — KT file photo
Bulls overpowered bears for the fourth consecutive trading day at the Dubai Financial Market (DFM) and its benchmark index breached the psychological barrier of 4500 points on Sunday on investors’ revived confidence in Arabtec.
The DFM General Index rose 4.4 per cent to 4593.57 points the highest close since June 15. Abu Dhabi’s ADX General Index increased by 1.7 per cent to 4849.47 points.
“Market has moved back to sensible valuations from being quite unvalued. Clarity on Arabtec has certainly calmed nerves. It should be noted that the upward move has been on very good volumes. I would now expect the market to stabilise” Saleem Khokhar head of equities at National Bank of Abu Dhabi’s Asset Management Group told Khaleej Times.
The biggest listed builder Arabtec rallied 15 per cent to the strongest finish in more than two weeks bringing its price appreciation in the past four days to 55 per cent. Another top value gainer of the day Union Properties was the most traded stock in the gauge adding 11 per cent.
Last week Arabtec chairman Khadem Al Qubaisi assured that the company would not delay or cancel any of the firm’s construction projects. Al Qubaisi who is also chairman of Abu Dhabi state-run Aabar Investments indicated that the company might increase its stake in the builder.
“Abu Dhabi being solidly behind the Arabtec story is inspiring confidence in the market” Khokhar said. “It’s good to see the market back up where it should be. It’s coming back up to realistic valuations because it had gone down too far” he added. The Securities and Commodities Authority the market regulator is investigating recent volatility it said last week. DFM Index entered a bear market on June 23 three weeks after the country’s exchanges began trading as emerging markets following an MSCI upgrade.
“The market had fallen too far at the end of June and it is only normal for it to correct upwards back to a more realistic level that reflects the underlying strength of Dubai and the UAE as a whole” Ramez Merhi director — Asset Management at Al Masah Capital told this scribe.
Union Properties followed by Arabtec was trading volume toppers with 288 million shares and 260 million shares respectively.
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