Dubai: Abu Dhabi’s benchmark stock index crossed an important target on Monday to once again be on a bullish track in the next few days as the emirate’s biggest real estate developer, Aldar Properties, rose to the highest in almost four years.
The capital’s measure, ADX Securities Index, went past the peak of 5004.34 that needed to be exceeded for the next important bullish signal. It ended at 5012.25, up 0.92 per cent.
“Closing above the last peak should be positive for both the markets at least in the very near term,” said Bruce Powers, a Dubai-based trader and analyst. “Abu Dhabi would then need to contend with the peak of 5158.56 from June 2008.”
Sebastien Henin, the head of asset management at Abu Dhabi-based The National Investor (TNI), agreed.
“From a technical point of view the stock has crossed some key resistances which has triggered a lot of interest from retail investors,” he said.
Of the 36 stocks traded, 16 declined, 12 gained and eight remained flat. Aldar’s closed 4.04 per cent higher at Dh3.86 a day after it announced of a possible IPO (Initial public offering) for Khidmah, its property management unit. It was the highest close since May 2010. The stock has surged 40 per cent this year.
But it’s not just the IPO possibility “in the coming years” that have buoyed the sentiment of Aldar investors.
“We’re moving closer to the Cityscape and investors are expecting new projects to be disclosed during the event,” said Henin. The Cityscape Abu Dhabi 2014 will be held in the capital from April 22 to 24.
Waha Capital was another big gainer on the day. It jumped 7.97 per cent to end at Dh2.98 after the investment firm said on Sunday it had sold its 60 per cent stake in AerLift.
The Dubai Financial Market General Index climbed 1.41 per cent to 4654.18. The volume traded stood at 950.27 million, which were valued at Dh2.22 billion. Of the 31 stocks traded, 23 advanced, five retreated and three remained unchanged.
“No specific reason for Dubai’s [gains today], said Henin. “The environment is still very positive and more money is being invested in the market.”
Among the most active stocks, share prices of Drake and Scull, Arabtec, Gulf General Investment Company, Dubai Financial Market and Dubai Investments gained 1.68 per cent, 2.78 per cent, 10.19 per cent, 0.60 per cent and 0.51 per cent respectively. DP World was among the biggest gainers, up 8.09 per cent to $19.50. Deyaar Development lost 1.20 per cent to close at Dh1.64.