Mild bargain buying seen in Dubai

FTSE RUSSELL TO INCLUDE SAUDI INDEX INTO ITS EMERGING MARKET INDEX

Mild buying was seen on Dubai index yesterday as bargain hunters became active. The Dubai Financial Market General index closed 0.58 per cent higher at 3,108.53. Emaar Properties closed 1.40 per cent higher at Dh5.80. Deyaar Properties closed 1.28 per cent higher at Dh0.476.

Gulf Navigation closed nearly 1 per cent higher at Dh1.03. Dubai Islamic Bank closed 0.13 per cent higher at Dh5.31. Gulf Finance House closed 2.27 per cent higher at Dh1.35. “UAE indices are expected to rebound during today’s session on the back Saudi Arabia’s listing as an emerging market by FTSE. The following has been an essential milestone for the region not only Saudi as it would attract additional investment in to the markets as a whole,” Menacorp said in a note.

The FTSE Russell has decided to include the Saudi index into its emerging market index from next year with a weightage of more than 2.5 per cent. Going ahead, Dubai market may see continued recovery, a market expert says. “Dubai market is approaching strong support levels and we expect to see some medium term buyers. Market is back to Feb 2016 levels while GDP is expected to grow by 2.9 per cent and oil is up over 100 per cent for the same period. 2017 was the year for consolidation and restructuring, once this is done, we expect to see a revival in the capital markets,” Tariq Qaqish, head of asset management with Menacorp said.

The Tadawul index closed 0.37 per cent lower at 7,870.87 after the announcement. The Abu Dhabi Securities Exchange general index closed 0.76 per cent higher at 4,585.40.

Taqa closed more than 6 per cent higher at Dh0.8. Dana Gas closed 4.55 per cent higher to Dh0.92. Arkan closed 3.03 per cent higher at Dh0.68.

The Qatar exchange index closed 0.24 per cent higher at 8,573.99. The Muscat MSM 30 index closed flat at 4,773.51.