Dubai: Dubai’s index jumped nearly a per cent on Monday, making it the best performer in the region and among its emerging market peers. It witnessed a 100 per cent increase in traded value as investors bought heavily on the back of confidence-boosting measures announced by the UAE.
The government announced a slew of measures late Sunday, which includes allowing 100 per cent foreign ownership in companies along with a provision to give 10-year visas to professionals. Market experts said the moves will positively impact real estate sector and companies which benefit from higher consumption of goods and services.
The Dubai Financial Market General Index closed 0.97 per cent higher to 2,947.08, after hitting a high of 2,960.50 earlier. The MSCI emerging market index was down 0.01 per cent to 1,137.60.
Traded value in Dubai jumped to Dh546 million on Monday, which was double the average value seen a few days ago.
“The move is a catalyst for a sentiment change. The market fundamentally was strong, but there were no catalyst, now we have a strong catalyst. I won’t be surprised if we are a better performing market globally,” Mohammad Ali Yasin, chief executive officer at First Abu Dhabi Bank Securities told Gulf News. “It is important for us to breach 3,000 level and then we may see the level of 3,200.”
Dubai index has been one of the laggard performers regionally along with the MSCI emerging market index. Dubai index has shed 8 per cent of its value in the past one year compared to 14.25 per cent gains in the MSCI emerging market gauge.
The Abu Dhabi Securities Exchange general index closed 0.73 per cent higher to 4,458.33.
Buying
Buying was seen in selected counters, which were underperformers in past few weeks. Emaar Properties, Damac Properties and Dubai Financial Market and Dubai Investments witnessed buying in trade.
Emaar Properties jumped nearly 3 per cent to Dh5.29, while Damac Properties jumped nearly 5 per cent to Dh2.39.
“It is a positive development for the UAE real estate market sector in particular as they could benefit from demand. Property prices in Dubai and Abu Dhabi have continued to decline this year, and this new regulation could provide a positive catalyst. We expect shares of Emaar Properties, Emaar Development and Aldar to react positively to this new regulation,” Charles-Henry Monchau, Managing Director — chief investment officer and Head of Investment Management at Al Mal Capital told Gulf News.
In Abu Dhabi, shares gained between half a per cent to 15 per cent. Etisalat closed 0.94 per cent higher to Dh16.05.
