Gulf News – Dubai stocks lead regional gains as risk-prone investors return
Dubai Parks and Resorts, which was the most active stock in trade, gained nearly 15 per cent, while volatility in Arabtec abates
Siddesh Suresh Mayenkar, Senior Reporter
March 13, 2016
Dubai: Dubai shares rose on Sunday, extending gains for another session as stabilising crude oil prices amid comments that they have bottomed out spurred risky bets.
The Dubai Financial Market General Index gained 1.36 per cent higher at 3,401.03, after gaining as much as 3,410.37. The index, which was one of the worst performing benchmarks in mid-January, has gained more than 7 per cent so far in the year.
“There is a positive sentiment that is developing after statements from IEA that oil prices have bottomed out,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala told Gulf News. On Friday, oil futures climbed 1.7 per cent, ending with a fourth weekly advance after the International Energy Agency said that oil prices may have bottomed out amid signs of rising US demand.
“The prices are holding up since 10 days. March has been without much of news so far, But if there are no negative developments then local markets will remain as they are,” said Shabbir.
In Abu Dhabi, the general index closed 0.43 per cent lower at 4,480.52.
Dubai Parks and Resorts, which was the most active stock in trade, ended up more than 14 per cent to be at Dh1.44 after the chief executive said he expects to turn profitable in second year of operations.
“The development in the projects are becoming more visible, so people are taking call on it. It is a growth asset in the market, so it is easy to leverage, so as long as the market direction is positive, it’s a no brainer,” Shabbir said.
The trend remains bullish to target next at Dh1.45 and then Dh1.68 in the coming few sessions, National Bank of Abu Dhabi Securities said in a note to its clients. Dubai Parks contributed to about 24 per cent of the total turnover of more than Dh800 million.
In other stocks, Arabtec, which was the most volatile stock for two weeks in a row till Thursday, ended 2.30 per cent lower at Dh1.70.
Emaar Properties ended more than 2 per cent higher at Dh6.27. “The stock managed to hold over the neckline support at Dh5.85, recovered and closed bullish at Dh6.10, almost closer to the target levels of Dh6.20,” NBADS said. Gulf Finance House ended at Dh0.795, down 2.57 per cent.
Gulf Finance House is poised to recover and fuel-in aggressive rallies towards the Dh0.84/0.875/0.95 in the short term. Traders who bought on lower levels may look to hold and add further while trailing the stops higher to Dh0.77, the NBAD said in a note.
Union Properties closed more than 3 per cent lower at Dh0.850. Out of a total of 35 stocks, shares of 16 firms each rose and fell, while the rest remained steady.
In Abu Dhabi, Eshraq Properties closed 1.28 per cent lower at Dh0.77. Methaq Takaful Insurance Co. shares ended more than 1 per cent lower at Dh0.85. Out of a total of 33 stocks traded on the exchange, shares of 12 firms rose, while other 14 fell. The rest remained steady.
Elsewhere in the Gulf, Qatar exchange index closed 0.56 per cent lower at 10,327.84. Kuwait Stock Exchange index closed 0.07 per cent higher at 5,288.54. Bahrain Bourse All share index closed 0.25 per cent lower at 1,151.66.