By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index surged 4.8% or 134.9 points to 2,955.95 points in July.
Market capitalisation went up to around AED 382.16 billion from AED 370.64 billion in June.
Over the month, the transportation sector jumped 9.4%, after Aramex and Air Arabia soared 10.4% and 9.29%, respectively.
UAE market performance during July was “good” and “above expectations” compared to the same month in the past few years, despite the Abraaj crisis, commented senior financial analyst at MenaCorp Issam Kassabieh.
Many Dubai- and Abu Dhabi-listed companies announced their exposure to Abraaj, which has faced allegations of money misuse in its $1 billion healthcare fund. In June, the Dubai-based investment firm filed for bankruptcy. It is reportedly undergoing a mega-restructuring plan.
Several companies, particularly those listed in the UAE, have disclosed their exposure to Abraaj as per a circular issued by the Securities and Commodities Authority (SCA). Such companies included Air Arabia’s AED 1.2 billion exposure, Al Qudra Investments, and Commercial Bank of Dubai (CBD).
Analysts previously told Mubasher that companies’ disclosures of the level of their exposure to Abraaj would boost investor confidence in the markets.
Emaar’s plan to sell some of its assets and the positive disclosures of a group of listed banks have boosted the DFM in recent weeks, Kassabieh said.
Earlier in July, informed sources told the Financial Times, that Emaar was signing contracts with several interest parties to sell assets at a combined value of AED 5.14 billion ($1.4 billion). However, the major developer denied such news, maintaining that it was “continuously exploring various options as part of its strategy to streamline its business to generate significant value."
In July, the investment sector added over 5%, as Dubai Investments levelled up 6.3% to AED 2.02, whereas the banks sector gained 5% after Emirates NBD hiked 7.8% and Dubai Islamic Bank (DIB) rose 3.3%.
The real estate sector increased by 4%, after Emaar Properties jumped 7.4%.
UAE markets are ready to begin a positive trend in simultaneity with disclosures and the announcement of new projects during the summer vacation, the analyst revealed.
The DFM’s trading volume reached 2.93 billion shares in July, while the market’s liquidity amounted to AED 3.67 billion.
Translated by: Muhammad Khalid
