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UAE shares gain as investors remain bullish after Expo win

Dubai: UAE’s stock measures gained on Monday as investors remained bullish after last week’s Expo win, which brought to Dubai the rights to host the event in 2020.

Monday’s increase comes on the back of Thursday’s high-volume trading, which saw Dubai’s stock index receding after reaching an intraday high of 3,020 to finally end at 2,946. Markets were closed on Sunday on account of UAE’s 42nd National Day.

The Dubai Financial Market General Index (DFMGI) climbed 1,40 per cent to 2987.17, with both turnover and volumes traded declining.

The value of 573.61 millions shares traded stood at Dh908.06, a drop from Thursday’s Dh1.46 billion. Of the 27 stocks traded, 16 advanced, nine retreated and two were flat.

“The DFMGI has now closed above the prior peak confirming a continuation of the uptrend,” said Bruce Powers, a Dubai-based trader and technical analyst, who is also a Gulf News columnist . “This follows intraday weakening that occurred after a strong open on Thursday as investors took profits more aggressively.

“Given the strong showing today it looks like the bulls may have one out. Next watch for a daily close above last week’s high of 3019.7 for further confirmation of strength.”

Abu Dhabi investors seemed to have been buoyed by the Dh20 billion for development announcement by UAE’s President on the eve of the National Day. The capital’s benchmark, ADX General Index jumped 1.20 per cent to end at 3896.15.

“Abu Dhabi also had a strong showing today with volume reaching a nine-day high,” said Powers. “ 3901.83 is the next resistance price level that the general index needs to surpass for a sign that it’s likely to continue higher in the near-term.”

In Dubai, DFM was the most active stock in terms of value traded. It surged 4.44 per cent to Dh2.35. Emaar Properties was up 2.54 per cent to Dh6.46; Union Properties gained 2.56 per cent to Dh1 and Dubai Islamic Bank rose 3.37 per cent to Dh4.60. In the capital, Aldar Properties closed 3.35 per cent higher to Dh2.47 and First Gulf Bank jumped 2.94 per cent to Dh17.50. Etisalat was unchanged at Dh11.50.