Abu Dhabi and Dubai shares rose yesterday on increased optimism as investors speculated that the country would be upgraded to emerging markets by index bench-marker MSCI. Brokers say cash dividends have been re-invested into the markets, which has increased daily traded value.
Property and building stocks in focus as the rallies roll on
Investors bought property and construction stocks as the UAE's bourses continued their rallies.
In Dubai, Deyaar Development surged 8.5 per cent to 32 fils. Union Properties rose 10.5 per cent to 42 fils, while Arabtec Holding added 1.3 per cent to Dh1.56.
The Dubai Financial Market General Index closed the day 1.5 per cent higher at 1,648.44 points, marking an increase of more than 20 per cent from this year's low of 1,352.24 points on March 3.
A 20 per cent gain is considered by many investors to be the start of a bull market.
In Abu Dhabi, RAK Properties added 5 per cent to 42 fils. RAK Cement added 4.1 per cent to Dh1.01 a share, and Aldar Properties rose 2.4 per cent to Dh1.67.
The Abu Dhabi Securities Exchange General Index added 0.7 per cent to 2,698.15 points.
"There is positive sentiment among investors in both markets and speculation that the markets will be upgraded [to] emerging markets status by the index benchmarker MSCI," said Wadah al Taha, the chief investment officer at Al Zarooni Group.
"In addition, cash dividends that have been distributed are being reinvested into the market," he said.
Elsewhere in the region: Kuwait's measure declined 0.7 per cent to 6,342.90; Bahrain lost 0.5 per cent to 1,404.07; Oman gained 0.1 per cent to 6,405.60; Qatar dipped 0.5 per cent to 8,728.99; and the Saudi Tadawul All-Share Index traded 1.1 per cent lower at 6,531.87.