By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) succeeded in attracting significant liquidity during its Wednesday trades as optimism improved following the announcement of a historic deal between Emaar Properties and Aldar Properties.
The DFMGI grew 0.75% or 23.90 points to close Wednesday at 3,206.70 points.
On Tuesday, Emaar Properties and its Abu Dhabi-listed counterpart Aldar Properties announced signing an agreement to establish an AED 30 billion ($8.2 billion) joint venture to develop local and global projects.
Optimism and confidence
Commenting on the DFM’s performance, Mohab Maher, senior sales trader at Mubasher Financial Services (MFS), said that markets were highly optimistic, with surging investor confidence following the deal signed between Emaar and Aldar, which will see the launch of an AED 30 billion JV.
Such news has revived the market and prompted investors resume purchases, Maher noted, adding that despite today’s rise in liquidity, the latter remains relatively weak. Investors are waiting to see if more incentives will pop up to determine whether or not they will re-enter UAE stocks.
Turnover jumped to AED 258.2 million on Wednesday from AED 155.4 million on Tuesday, while volume grew to 140.90 million shares versus AED 81.13 million.
Deyaar, down 0.4%, was the most active stock in terms of volume with 18.85 million shares exchanged, while Emaar Properties’ stock was the value leader with AED 47.23 million.
Investment, real estate in the lead
The investment sector led the session’s risers, adding 1.27% after Dubai Investments grew 1.86% to AED 2.19, while the real estate sector gained 1.25% after Emaar Properties increased 2.2% to AED 6.07 following its historic deal with Aldar, while Emaar Development went up 2.06% to AED 5.46.
The transport sector added 0.71% as Aramex and Air Arabia grew 0.9% and 0.78% to AED 4.39 and AED 1.29, respectively. The banks sector rose 0.38% after Emirates NBD and Dubai Islamic Bank (DIB) gained 0.98% to AED 10.35 and 0.18% to AED 5.5, respectively.
On the flipside, the services sector led losers, falling 2.9% after Amanat Holding retreated 5.15% to AED 1.29, while the consumer staples sector decreased 0.17%, weighed by DXB’s 0.38% decline.
Translated by: Nada Adel Sobhi
