x Abu Dhabi, UAESunday 21 January 2018

Etisalat helps Abu Dhabi stock index to breach key level

Markets Wrap: Abu Dhabi's index broke through the key 3,000 level for the first time since November 2009 helped by the telecoms giant Etisalat.

Etisalat helped to push ADX through the 3,000 barrier. Sarah Dea / The National
Etisalat helped to push ADX through the 3,000 barrier. Sarah Dea / The National

Abu Dhabi's index broke through the key 3,000 level for the first time since November 2009 helped by the telecoms giant Etisalat.

The country's largest public company gained 2.9 per cent to reach a three month-high after posting earnings on Tuesday. Etisalat wrote down the value of businesses in Pakistan and Sudan by a combined US$769 million.

It made a quarterly profit of Dh854.3 million, according to Reuters calculations.

Dubai's measure climbed 0.4 per cent to 1,922.37, a fresh 39-month high.

"Whether or not this rally will last depends if the economic improvement continues and if the global macro picture remains benign," said Fadi Al Said, the head of investments at ING Investment Management.

Dubai's small and medium-cap stocks are catching up to gains in blue chips. Dubai Investments and Dubai Islamic Bank added 1.9 and 0.5 per cent respectively.

Elsewhere, emerging-market stocks rose the most in seven weeks, with technology shares reaching the highest level since 2000, as South Korea's central bank said an improving world economy is boosting domestic growth. The won strengthened.

"The global outlook shows sustainable growth recovery," said Tan Lip Kwang at K&N Kenanga Holdings.

"When the global economy recovers, demand for certain goods will pick up, like electronic goods. Korea is highly dependent on exports, so the global economic recovery is helping exporters there."

The 21 countries in the MSCI emerging market index send about 26 per cent of their exports to the European Union on average, data compiled by the World Trade Organisation show.

South Korea's Kospi Index surged 2 per cent, leading gains among Asian benchmark gauges.

 

* with agencies