Dubai rides high on aggressive buying

Traders shift focus from etisalat and FAB to other smaller stocks in Abu Dhabi

The Dubai bourse witnessed aggressive buying in Emaar Properties for a second day on reports that Abu Dhabi National Hotels (ADNH) may buy some hotel buildings from the company. The local index jumped to more than 1 per cent at one point.

About 21.66 million shares changed hands in the stock, the highest this year. This was over and above the volume of 17 million shares registered in the previous session. Emaar Properties shares closed 3.33 per cent higher at Dh5.27.

“A break over the level of Dh5.14 in Emaar Properties shall target the much-awaited level at Dh5.38 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities (FABS) said in a note. Abu Dhabi National Hotels Co shares also rose nearly 15 per cent to Dh4. The Dubai Financial Market General index closed 0.74 per cent higher at 2,805.22.

Aramex shares closed 5 per cent higher at Dh4.15. FABS advises clients to buy Aramex at Dh4.10 for a target of Dh4.50/5.40 over the medium term.

“Technically, the stock is seeing a bullish reversal,” Prakash said.

Traders shifted focus from etisalat and FAB to other smaller stocks in Abu Dhabi. The Abu Dhabi Securities general index closed 0.38 per cent higher at 4,920.67.

Adnoc Distribution closed 4.5 per cent higher at Dh2.32. Aldar Properties closed 2.31 per cent higher at Dh1.77, while RAK Properties closed 4.85 per cent higher at Dh0.58.

Dana Gas closed flat at Dh1.15. “Dana Gas is expected to face difficulties until its third-quarter results are posted with expectations set high for the company,” Issam Kassabieh, senior analyst with Menacorp, said.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.35 per cent lower at 7,879.37.

Alinma Bank closed 0.28 per cent lower at 21.70 Saudi riyals, while Saudi Basic Industries Corp. closed 0.16 per cent lower at 126.60 riyals.