Dubai Financial Market company, whose performance tends to mimic sentiment towards the Dubai equity market, rose 6 per cent yesterday.
DFM Company shoots up 6%
The Dubai Financial Market (DFM) Company, whose share performance tends to mimic the Dubai equity market, jumped 6 per cent yesterday.
"The DFM [Company] is always a high-sentiment play on what's happening in Dubai stocks," said Saleem Khokhar, the head of equities at National Bank of Abu Dhabi. "In terms of fundamentals, the share price needs a bit of justification. Fair value has been reached."
Shares in DFM Company, the only publicly-listed bourse in the Arab world, hit Dh1.23 at the close.
Property companies also did well on the DFM General Index. Shares in the Dubai-based developer Emaarrose throughout the day to end the session 3.53 per cent higher at Dh3.18. "Emaar seems to be coming into its own, with its recurring revenue and growth story," said Mr Khokhar.
On the Abu Dhabi Securities Exchange (ADX) General Index, Sorouh Real Estate rose 3.48 per cent to Dh1.19. Aldar also ended the day higher by 0.85 per cent at Dh1.19.
The DFM General Index ended the day 2.37 per cent up at Dh1,693.67. The ADX General Index closed 0.14 per cent higher at 2,563.57. The Nasdaq Dubai UAE 20 Index closed up 1.9 per cent at 1,734.83.
"Higher valuations are justified in the UAE," Mr Khokhar said. "Similarly Saudi Arabia."