Interest in key bluechips helps DFM extend gains

TADAWUL DOWN 0.79% AHEAD OF EXPECTED MSCI UPGRADE THIS MONTH

The Dubai index on Sunday extended its gains, aided by strong interest in key bluechips that sustained buying momentum stretching back to June 3 when the index breached the 3,000 mark.

The Dubai Financial Market (DFM) General Index advanced 0.42 per cent to close at 3,054.45. Since June 3, the index has gained 1.8 per cent. Arabtec closed nearly 6 per cent higher to end the session at Dh2.33.

“Arabtec has continued to perform on the back of improving investor sentiment following a number of government initiatives to boost the economy, including the real estate sector and partially to the company’s positive first-quarter performance that could mirror in the first-half results,” Menacorp said in a note.

In other stocks, Gulf Finance House (GFH) closed at Dh1.48, up 1.37 per cent. Emaar Properties closed half a per cent higher at Dh5.57.

Trading remain relatively muted, with the total value weighing in at Dh197 million.

“The coming period will be affected by the upcoming holiday season, which would translate [into] subdued trading activity for the regional markets,” Al Masah Capital said in a note.

The Abu Dhabi index closed 0.62 per cent higher at 4,691.68 — boosted by banks.

“In Abu Dhabi, banks are still proving to be the strongest, with real estate still having a long way to go,” the Menacorp note added.

Abu Dhabi Commercial Bank closed 0.11 per cent higher to end at Dh7.48 while First Abu Dhabi Bank closed 0.1 per cent at Dh12.4.

“With current oil price levels being significantly higher than two years ago, along with the value-added tax programme, the federal government has been able to pump some serious inflows to the economy, which are already attracting FDIs that could trigger real buying following the second quarter,” the Menacorp note said.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index closed 0.79 per cent lower at 8,278.51 ahead of a potential MSCI inclusion in the Emerging Market index later in the month.