Markets Wrap: Dubai stocks yesterday crossed the 1,900 threshold investors consider as a major resistance level.
Dubai stock market on fire
Dubai stocks jumped yesterday, crossing the 1,900 threshold that investors consider a major resistance level, after du reported better than expected corporate earnings.
"The market is on fire," said Fadi Al Said, the head of equities at ING Investments in Dubai. "From a technical perspective Dubai's market is looking very healthy."
Du, the UAE's second-biggest telecoms operator, said net income in the fourth quarter more than doubled to Dh994 million. The shares jumped 11.65 per cent to close at Dh4.12.
The Dubai Financial Market General Index rose 1.7 per cent, or 32 points, to close at 1,914.43.
Du accounted for 17 points of the 32-point rise on the index.
"The market was consolidating, but after it crossed 1,900 it caused investors to be excited," said Mr Al Said.
Abu Dhabi's shares declined yesterday, weighed by property companies and banks, as investors booked profits amid lacklustre catalysts to warrant buying.
"It was a normal day, not a lot of market news to move stocks," said Mr Al Said.
Aldar Properties fell 1.9 per cent to Dh1.51. Sorouh Real Estate declined 1 per cent to Dh1.85 after reports emerged that the company had still not targeted the required quorum of shareholders to vote on the proposed merger with Aldar.
Elsewhere in the region, Kuwait's measure fell 0.3 per cent to 6,386.80.
Bahrain's index was little changed at 1,095.14.
Oman's MSM 30 Index added 0.2 per cent to 5,911.75. Qatar's QE Index slipped 0.1 per cent to 8,779.90. The Saudi Tadawul All Share Index fell 0.4 per cent to 7,025.74.