Markets Wrap: Bellwether shares in Dubai and Abu Dhabi increased early Tuesday, taking cues from Asian markets on speculation of further stimulus to help boost the global economy.
UAE markets lift amid stimulus speculation
Property and finance companies led an increase on Dubai’s stockmarket yesterday as investor sentiment improved globally.
The Sharia-compliant mortgage lender Tamweel advanced 1.8 per cent to Dh1.12.
The DFM index rose 0.8 per cent to 1,449.80.
Asian markets rebounded amid speculation that the US Federal Reserve will adopt further stimulus measures to help the flagging economy.
Japan’s Nikkei rose 1 per cent to 8,382 points. South Korea’s Topix advanced 1.8 per cent to 708.24, and Hong Kong’s Hang Seng added 0.4 per cent to close at 18,259.
“The rebound of Asian markets stipulated positive momentum for investors in the local market,” said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai.
“Going forward, with modest news coming our way, UAE stock markets will continue to be highly correlated to international volatility.”
Abu Dhabi’s two biggest developers, Aldar Properties and Sorouh Real Estate, rose sharply amid speculation that an impending outcome on a potential merger of the two companies will be announced soon.
Aldar advanced 3.8 per cent to Dh1.08 on the Abu Dhabi Securities Exchange (ADX) General Index, while Sorouh jumped 4.1 per cent to Dh1.
The ADX index rose 0.4 per cent to 2,433.39.
Kuwait’s measure gained 0.6 per cent to close at 6,130.20, Bahrain slipped 0.2 per cent to 1,131.46, Oman’s MSM 30 Index rose 0.8 per cent to 5,764.93, and Qatar’s QE Index slipped 0.1 per cent to 8,322.19.
The Saudi Tadawul All-Share Index fell 0.4 per cent to 6,736.82.
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