DIB, Emaar give boost to Dubai index

TRADERS RESORT TO BARGAIN BUYING IN EMAAR DEVELOPMENT SHARES

Buying in Dubai Islamic Bank (DIB) after the rights issue and Emaar Properties helped the Dubai index yesterday, while the Abu Dhabi index fell due to selling in banking shares.

The Dubai Financial Market (DFM) General Index closed 0.78 per cent higher at 2,987.25. DIB closed 2.76 per cent higher at Dh5.21.

Emaar Properties closed 2.12 per cent higher at Dh5.31, after the stock shed 17 per cent since the start of the year. Emaar Properties has underperformed the Dubai index, which has shed more than 10 per cent since January.

Selling was seen in Emaar Development, indicating that traders may be shifting to Emaar Properties, which has been perceived as an undervalued stock.

Emaar Development closed 3.40 per cent lower at Dh5.12. Air Arabia closed more than 2.5 per cent lower at Dh1.13.

Trading value, which continued to tumble for another session, fell to Dh195 million from Dh200-Dh250 million last week. “The coming period will be affected by the aftermath of the MSCI rebalances that took place at the end of last week, coupled with Ramadan and the upcoming holiday season. Regional markets are likely to experience a subdued trading activity,” Al Masah Capital said in an emailed note.

The Abu Dhabi index closed 0.85 per cent lower at 4,566.05. Taqa shares closed 8 per cent lower at Dh1.15. Etisalat closed more than 1 per cent lower at Dh16.

First Abu Dhabi Bank closed more than 1 per cent weaker at Dh12.15.