Dubai: Dubai s benchmark stock index advanced the most among Gulf peers as real estate shares extended gains.
The Dubai Financial Market General Index rose as much as 1.3%, up for a fifth day in its longest winning streak since March. The sub-index tracking Dubai-based real estate shares climbed as much as 2.4% on Sunday, touching the highest level since November 2019. Those shares are trading higher amid a residential property price rally Morgan Stanley sees lasting for years.
Vaccinations are helping a lot the reopening theme from an investment case perspective, particularly in the United Arab Emirates and Saudi Arabia, Ali El Adou, head of asset management at Daman Investments in Dubai, said in an interview with Bloomberg TV. The UAE, a federation of seven sheikdoms including Dubai, has one of the highest inoculation rates globally.
Abu Dhabi and Dubai stocks hit a pause in early trades on Monday after scaling highs in recent days, with investors awaiting a flood of earning announcements before markets close for Eid. And retail investors will be tempted to sell some of their positions to finance their Eid celebrations.
Abu Dhabi Securities Exchange dropped 0.3 per cent to 6,202 points, heading towards its second decline out of the last seven sessions, with the number of stocks sliding and climbing nearly equal in numbers. But the weakness in more heavyweight shares tipped the index balance down.
Merger plan
Arkan Building and Materials soared 14.5 per cent posting another stellar performance, having surged 15 per cent on Sunday after Senaat revealed a plan to merge Arkan with Emirates Steel. The potential deal helped reverse the stock s fortunes sending it to around 20 per cent up for the year. It marked a rebound from a plunge of the same magnitude as it came under selling pressure from a lackluster fu
Abu Dhabi stocks closed out the week with a host of robust corporate earnings topping market expectations and stoking investor confidence. Saudi stocks, on the other hand, ended lower with earnings weighing them down.
Abu Dhabi Securities Exchange ended the day higher by 0.6 per cent to 6,152 points, and is up 1.7 per cent for the week, with signs that more listed companies are plotting their way out of last year s subdued activity. The weekly gains mark a reversal from two consecutive weeks of declines, when fears about uncertain market conditions gripped investors and forced them to book profits. At the time, the index was trading around 22 per cent higher for the year.
Dubai stocks surged to their best showing in more than two weeks bolstered by real estate stocks, while Abu Dhabi shares were off to a good start in the new month as first quarter earnings provided much needed impetus. Saudi stocks underperformed from a clouded oil outlook and poor corporate results.
Dubai Financial Market scaled up 1.1 per cent to 2,654 points in what was its biggest leap since mid-April. The index opened the month on a strong footing gaining nearly 2 per cent, and comes after the gauge ended the final two weeks of April in the red amidst investors into encashing their positions.