(MENAFN - Khaleej Times) Shares on Dubai stock market rallied yesterday as investor sentiment rose following successful resolution of the Greek debt deal, positive data from US job markets and higher oil prices.
The Dubai Financial Market's General Index, or DFMGI, made its largest gains in more than two years as investors showed interest in property shares. The benchmark index surged 4.73 per cent, the largest one-day advance since December 2009, to 1,686.66 points. The trading volumes rose to 503 million shares with 28 companies traded in positive columns.
Emaar Properties surged 4.5 per cent, Arabtec soared 9.7 per cent and Deyaar climbed 14.9 per cent.
Emirates NBD advanced 2.9 per cent and DFM gained 9.73 per cent, also supported the index.
According to a technical analysis by Mubasher Info, the benchmark index is expected to continue its rise towards the next resistance levels between 1,690 and 1,780 points.
The Abu Dhabi market also rose 0.98 per cent, the most since February 26, to 2,586.95 points. The volumes improved to 139.62 million shares from 91.23 million traded on weekend.
"The UAE markets recovered from the selloff last week with solid gains across the board. Aldar and Sorouh Real Estate closed limit up and investor appetite for risk remains," Saleem Khokhar, head of equities at National Bank of Abu Dhabi's Asset Management Group, told Khaleej Times.
"Stability in the international markets is adding to the growing confidence, as is a strong oil price. I would expect the rally to continue but expect volatility to remain," he added.
Dubai's shares have rallied 25 per cent so far this year after improved earnings and dividends boosted investor confidence in the equities. The market was slightly up on Thursday after falling more than eight per cent in the previous two sessions.
"Dubai stocks rose today led by Emaar Properties, DFM and Emirates NBD, which accounted for half the markets gain. We believe the positive global picture, following the resolution of the Greek-debt restructuring was a driving factor for stocks rising across the board," Ibrahim Masood, Portfolio Manager, Mashreqbank, told Khaleej Times.
"The sharp movements in recent days, as evidenced by a couple of four per cent daily drops last week and today's sharp rise, indicate that most market players remain a bit uncertain and sentiment is quite fickle.
"Markets are likely to remain quite volatile over the next week, though on balance stocks may advance a little bit," he added.