Markets Wrap: Abu Dhabi's equity market headed towards bull market territory after rallying almost 20 per cent from last year's low, amid investor bets that corporate earnings and dividend payouts will outperform expectations.
Abu Dhabi stocks heading into bull market territory
Abu Dhabi's equity market headed towards bull market territory after rallying almost 20 per cent from last year's low, amid investor bets that corporate earnings and dividend payouts will outperform expectations.
The Abu Dhabi Securities Exchange General Index advanced 0.5 per cent to close at 2,743.44 points. It advanced as much as 1.3 per cent during the trading session, bringing its total gains to 19.5 per cent since it touched a low of 2,293.09 on January 17 last year. A market that is up by 20 per cent is considered a bull market.
"We have had a stream of positive news from the real-estate sector, coupled with coming from a low valuation base, combined with the fact that things on the ground are improving," said Fadi Al Said, the head of equities at ING Investment Management in Dubai. "If banks increase their dividends, that will be a catalyst for the market to move higher."
Aldar Properties and Sorouh Real Estate each advanced 1.28 per cent, to both close at Dh1.58 a share. The two biggest developers in Abu Dhabi are in advanced discussions over a potential merger that would create a company with US$15 billion in assets.
By contrast, Dubai's index slipped 1.3 per cent, amid profit taking, to close at 1,733.1 points.
Elsewhere in the region, Kuwait's measure added 0.6 per cent to 6,109.34. Bahrain's index advanced 0.9 per cent to 1,072.88. Oman's MSM 30 Index rose 0.4 per cent to 5,844.02. Qatar's QE Index dropped 1.1 per cent to 8,684.72.
The Saudi Tadawul All-Share Index moved 0.7 per cent to 7,115.19.