Dubai shares reached a 10-month high yesterday as traders continued to flood back to the market.
Dubai stocks hit new high
Dubai stocks hit a 10-month high yesterday as traders continued to flood back to the market.
The Dubai Financial Market General Index closed up 2.71 per cent to 1,676.49, the highest since April 21. The bourse has gained 20.61 per cent in the year to date.
Leading the pack was Dubai Islamic Insurance, up 14.96 per cent. Deyaar Development, which develops and manages property, gained 12.37 per cent on the day. Tabreed, a cool water provider for air conditioning systems, also benefited from a double-digit gain of 11.34 per cent.
Shares in Air Arabia, the Middle East's biggest discount airline, climbed 76 fils to a 10-month high after reporting a 7 per cent increase in profit, but fell back during the session to close up 0.67 per cent.
Fourth-quarter profit climbed to Dh78.7 million and the company said it planned to pay a cash dividend of 4.5 fils a share for last year.
Marwan Shurrab, the chief trader at Gulfmena Investments, said the main catalysts driving the markets are the unexpected dividend distributions that were kicked off by the banks at the start of the year and have continued to date.
"There is now a continuation of interest based on the idea payments are due soon," Mr Shurrab said. "Most retail investors start positioning more aggressively as the payments date starts falling due."
The Greek bailout and positive US jobs data have also created a better backdrop for trading, he said.
The Abu Dhabi Securities Exchange General Index also gained to close up 1.28 per cent at 2,571.58. Kuwait's market was closed for a national holiday.