Is Dubai started to recovered from current economy crunch?
Last updated on May 15th, 2013
The Dubai Financial Market General Index climbed 1.07 per cent to 1,558.00 and Abu Dhabi Securities Exchange Index advanced 0.54 per cent to 2,424.80.
The Dubai and Abu Dhabi stock market indices rose for the fourth straight day as investor sentiments seemed to be buoyed by expectations of stimulus measures starting to effect a recovery towards the year end.
The question is “Is Dubai started to recovered from current economy crunch?”
Matthew Wakeman, managing director of cash and equity-linked trading at EFG-Hermes said, “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”.
“Investors now have a two-pronged reason for buying, the first is the ongoing speculation about stimulus and cash injections on a global and domestic level, and the second is quarter one results.”
Among the top traded stocks on DFM were Air Arabia, Ajman Bank and Emaar that gained 5.15 per cent to Dh1.02; 2.83 per cent to Dh1.09 and 4.78 per cent to Dh2.19 respectively. Dubai Islamic Bank also jumped 5.86 per cent to end at Dh2.53. Dubai Investments Company fell 6.61 per cent to Dh1.13 and Emirates NBD sank 3.49 per cent to Dh3.04.
In Abu Dhabi, Arkan was the biggest gainer, jumping 9.85 per cent to Dh5.02 and extending its two-day rally to about 20 per cent.
Abu Dhabi National Energy Company (Taqa), gained 6.51 per cent to Dh1.79, Aldar Properties, which advanced 5.49 per cent to Dh2.50; and Aabar Investments, up 3.98 per cent to Dh1.83.
First Gulf Bank and National Bank of Umm Al Quwain declined 7.30 per cent to Dh8.00 and 9.09 per cent to Dh3.50 respectively.
“Bank stocks were under pressure… with the exception of Dubai Islamic Bank which is part of a syndicate with RBS and Standard Chartered to refinance Dewa’s $2.2 billion Islamic loan,” said Wakeman.