x Abu Dhabi, UAEWednesday 26 July 2017

Big name property stocks continue their UAE rally

Dubai shares close higher on increased optimism after cash dividends were re-invested into the local markets, brokers said.

Investors traded property and construction names in the latest leg up in the stock market rally.

In Dubai, Deyaar Development surged 8.5 per cent to 32 fils. Union Properties soared 10.5 per cent to 42 fils. Arabtec Holding added 1.3 per cent to Dh1.56, while Emaar Properties rose 2 per cent to Dh3.43.

Dubai's benchmark, the Dubai Financial Market General Index closed 1.5 per cent higher to 1648.44 points, crossing the 20 per cent mark from this year's lows that some investors consider as the beginning of a bull market. The index reached a low of 1352.24 on Mar 3.

"The market is now in the process of recovering from the sell-off spurred by the unrest in the region," said Julian Bruce, the head of equity sales at EFG-Hermes in Dubai.

"There is positive sentiment among investors in both markets and speculation that the markets will be upgraded by emerging markets status by index bench-marker MSCI, said Wadah Taha," the chief investment officer at Al Zarooni Group in Dubai.

"In addition, cash dividends that have been distributed are being re-invested into the market."

Average daily value traded on both markets for April reached Dh353 million, surpassing the daily average for the year at Dh295 million

In Abu Dhabi, RAK Properties added 5 per cent to 42 fils. Ras al Khaimah Cement added 4.1 per cent to Dh1.01 a share, while Aldar Properties rose 2.4 per cent to Dh1.67.

The Abu Dhabi Securities Exchange General Index added 0.7 per cent to 2698.15 points.

Elsewhere in the region, Kuwait's measure declined 0.7 per cent to 6342.90. Bahrain's index lost 0.5 per cent to 1404.07. Oman's benchmark gained 0.1 per cent to 6405.60. Qatar's index dipped 0.5 per cent to 8728.99. The Saudi Tadawul All-Share Index traded 1.1 per cent lower to 6531.87.