Banking stocks lift Abu Dhabi index

dubai — The UAE equity markets opened on a higher note on Tuesday after a long weekend, helped by scrips from the banking, real estate and construction sectors.

The Dubai Financial Market General Index (DGMGI) gained 0.27 per cent to close 2,675 points. In the morning session, it had crossed the key psychological barrier of 2,700 before easing in the later session.

The Abu Dhabi Securities Exchange (ADX) jumped 2.7 per cent to 4,898 points, helped by the National Bank of Fujairah (NBF), Bildco, RAK Cements, Adnic and Abu Dhabi Commercial Bank. It was the biggest 1-day gain for the Abu Dhabi bourse in 2 years.

NBF hit a day’s ceiling of 15 per cent to close at Dh3.9. First Abu Dhabi Bank shares also gained 4.4 per cent in the early session on Tuesday but eased later as it was the bank’s first trading day after its weighting in the MSCI’s emerging markets index doubled.

In Dubai, Emaar gained 1.8 per cent to Dh4.58 with 15.25 million shares changing hands worth Dh70 million. On Nasdaq Dubai, DP World shares made a big gain of 8.2 per cent to $1.34.

According to the UAE Central Bank’s third-quarter report released on Tuesday, higher oil prices gave more confidence to investors, with a significant increase in share price indices of the Abu Dhabi securities markets. However, in Dubai the share price index lost value. The market capitalisation on DFM and ADX experienced the same trend as share price indices — i.e., rising for ADX and declining for DFM.

The Dubai bourse has been on a downward trajectory in 2018, falling from 3,411 points on January 2, 2018, to 2,675 points on December 4, losing 21.5 per cent year to date.

On a valuation basis, the overall market looks highly undervalued, currently trading at a P/E of 7.5 when compared with the S&P GCC Composite Index valuation of 14.8, Marmore Mena Intelligence said in a note released on Tuesday. — waheedabbas@khaleejtimes.com