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DFM marks biggest jump since mid-February

Abu Dhabi: Dubai’s benchmark index grew 2.91 per cent on Monday to end at 4,984.04, marking its biggest increase since February 16, while the ADX Securities Index rose 1.01 per cent to end at 5,191.82.

Arabtec Holding, a UAE-based engineering and construction company, achieved the biggest stock market jump in its history when it reached a value of Dh8 on DFM.

The market closed, however, with a price of Dh7.98 per share of Arabtec stocks, as the company marked a 9.47 per cent increase in value of trade.

Osama Al Ashri, a member of the British organisation, Society of Technical Analysts, said the rise of the share’s price is part of the company’s targets for Q2 2014.

“There was a rumour that Arabtec withdrew from a project it is working on in Russia, but the company just confirmed that was not true, so that definitely affected trade of its stocks,” he said.

He added that Arabtec’s target is Dh8.17 per share, and once it crosses that, it hopes to reach a new high.

“This is an easy target to achieve, I think, but the question is whether they can maintain this high figure or not. That will be hard, and there will be corrections. This share was priced at Dh2 about six months ago so this huge jump makes the share a high-risk one,” Al Ashri said.

Discussing the 2.91 per cent jump in DFM, he said the index has a target to end at over 5,000, and expected that to be achieved this month.

Al Ashri attributed the increase to Morgan Stanley’s upcoming classification of the UAE and Qatar as emerging markets, as well as positive sentiment in the real estate sector.

However, he warned that such increases, which are mostly on the back of one sector, are not healthy.

“This increase creates optimism, but I don’t think it’s healthy to have the stock market thriving on the back of real estate alone. Banking, for example, isn’t moving, and the insurance sector went down, so there’s no balance in the market, and that’s high-risk,” the analyst said.

In Dubai, Deyaar Development was among the stocks that showed most change in value with a 6.06 per cent jump. Emaar also rose 3.92 per cent and ended the day with a share price of Dh10.60; Drake & Skull added 3.43 per cent, but Gulf General Investments Co dropped 2.15 per cent.

Meanwhile, Abu Dhabi’s Aldar Properties registered the greatest increase with a 4.54 per cent gain in volume, while Eshraq Properties decreased 1.12 per cent, and RAK Properties dropped 0.71 per cent in volume.

Of the 31 stocks traded on DFM, 17 went up, eight went down, and six remained unchanged. On the ADX, of the 39 traded stocks, 17 advanced, 13 declined, nine remained flat.