Indexes’ losing streaks end
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.