Dubai Stocks Post Biggest Daily Gain in Seven Months as Market Value Tops Dh1 Trillion

The DFM index rose 3.96 per cent on Wednesday, its third straight advance, as foreign investors bought a net Dh237.6 million and Emaar shares took more than half of the day's turnover.

By Nakoda News Desk

1 day ago·2 min read

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The Dubai Financial Market's main index jumped 3.96 per cent on Wednesday to close at 6,040.74 points, its biggest one-day rise in about seven months and its highest level in about four months, Al Bayan reported. It was the index's third consecutive gain.

The rally added about Dh33.85 billion to the value of Dubai-listed companies. Market capitalisation rose from Dh967.2 billion at Tuesday's close to Dh1.001 trillion, according to the newspaper.

Turnover in Dubai exceeded Dh2.1 billion across 28,700 trades, 57 per cent of the more than Dh3.7 billion traded on the UAE's two exchanges during the session. Foreign investors were net buyers of Dh237.6 million, buying more than Dh1.1 billion of shares and selling about Dh866.6 million.

Emaar Leads The Rally

Trading was dominated by the Emaar group. Emaar Properties took more than half of Dubai's turnover, with over Dh1 billion traded, and rose 4.4 per cent to Dh12.30. Emaar Development took around a quarter of turnover, more than Dh573.5 million, and closed 4.9 per cent higher at Dh14.58. Earlier this week Emaar Properties offered Dh15 a share to take full control of Emaar Development, and Emaar Development shares jumped on Tuesday.

Among other large gainers, Amlak Finance rose 13.3 per cent, Etihad Energy (Etihad WE) 12.94 per cent, du 7.8 per cent, Emirates NBD 6.09 per cent and Dubai Islamic Bank 5.7 per cent. Real estate, financials and industrials led the gains.

Abu Dhabi did not follow. Its main index slipped 0.02 per cent to 9,461.41 on turnover of more than Dh1.6 billion. Aldar Properties was the most traded stock and rose 6.5 per cent, and Abu Dhabi Islamic Bank gained 5.94 per cent, but International Holding Company fell 5 per cent and NMDC 2.47 per cent.

Regional Markets Also Rise

Most regional markets advanced. Saudi Arabia's Tadawul All Share Index gained 1.65 per cent to 10,039, a two-week high, Qatar rose 2.81 per cent and Egypt's EGX30 climbed 2.83 per cent.

The gains came on the day markets digested the US midterm results, which gave Democrats control of both houses of Congress and pushed the dollar to a one-month low. They also follow strong October purchasing managers' data for the UAE's non-oil private sector. Al Bayan did not attribute Wednesday's move to a single cause, and pointed to heavy foreign buying and activity in property and banking stocks.

For investors, crossing Dh1 trillion in market value is mainly symbolic. Still, it shows how much of Dubai's recent strength depends on a handful of large property and banking names, and in particular on the Emaar group's restructuring.