Market Wrap: Dana Gas, the energy giant, was among the top gainers in Abu Dhabi in afternoon trading after HSBC initiated "overweight" coverage on the stock.
Dana Gas shares rise as HSBC predicts strong demand for company
Energy giant Dana Gas was among the top gainers in the capital in the first day of trade after HSBC said the company would benefit from strong demand for fuel from the power and chemical sectors.
Shares in the company climbed after it was rated "overweight" by HSBC brokerage.
It rose 3.4 per cent to 61 fils, its highest point in three days.
While early gains were clocked on the capital's market, the Abu Dhabi Securities Exchange General Index ended 0.3 per cent lower to 2,704.19 points, weighed down by a sell-off in banking and property stocks
But the main focus was on Dubai's market, which ended the trading session higher as investors looked to the emirate as the main beneficiary of a government decision to extend the visa period for property investors.
The federal government decided on Tuesday to extend visas for homebuyers to three years instead of six months, triggering buying across the property sector.
The Dubai Financial Market rose 0.6 per cent to 1,516.93 points, as shares in bellwether property stocks maintained early gains.
More than 45 million shares combined were traded on these property stocks, making up almost half of all trading on the Dubai market.
Analysts said Dubai stood to benefit more than Abu Dhabi as it is more established in terms of completed property ready to handover.
"From a stock perspective, the Dubai stocks should outperform Abu Dhabi [because]... in terms of the residential cycle, Dubai is nine months ahead of the property cycle," said Chet Riley, a property analyst at Nomura.