In­dexes’ los­ing streaks end

The National - News - Business - - The Markets - An­thony McAuley

Abu Dhabi and Dubai eq­uity mar­kets rose yes­ter­day, re­cov­er­ing a lit­tle of the ground lost in re­cent weeks as stocks start to look cheap. The DFM Gen­eral In­dex gained 0.67 per cent to close at 3,340.27, gain­ing ground on the pre­vi­ous ses­sion, which was the low­est close for the in­dex since last Novem­ber.

The ADX Gen­eral In­dex like­wise broke a re­cent los­ing streak to edge up 0.2 per cent to a close of 4,501.76.

In Dubai, in­sur­ers and other fi­nan­cials were the biggest gain­ers, with Taka­ful Emarate, Aman, and GFH and Aj­man Bank ris­ing. On the ADX, Dana Gas had the biggest vol­ume but with lit­tle price ac­tion, as the shares closed un­changed at 39 fils. Some news out­lets re­ported over the week­end that Dana Gas and its ma­jor share­holder and part­ner in the Pearl Petroleum Con­sor­tium, Cres­cent Petroleum, had filed a US$26.5 bil­lion claim in a US court against the Kur­dis­tan re­gional govern­ment (KRG) in a long-run­ning dis­pute over its projects there.

The KRG yes­ter­day said it would de­fend it­self against the claim. The Saudi Tadawul closed up 0.72 per cent at just above 6,870, with big com­po­nent stocks such as Sabic ris­ing.

In­vest­ment ad­vis­ers at Abu Dhabi Is­lamic Bank are telling investors that GCC stocks, which have trailed be­hind rallies in other re­gions, now rep­re­sent good value.

“A sta­bil­i­sa­tion in the oil price, has im­proved the eco­nomic out­look of the re­gion, while gov­ern­ments are press­ing ahead with struc­tural re­forms that will al­low for anti-cycli­cal fis­cal poli­cies and eco­nomic di­ver­si­fi­ca­tion to con­tinue to be im­ple­mented,” said Kais Dachraoui, head of in­vest­ment ad­vi­sory at ADIB.

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