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UAE markets look up with Emaar
By Stanley Carvalho, Staff Reporter
Published: 09/03/2006 12:00 AM (UAE)


Abu Dhabi: UAE markets rallied on the opening day of the post-summer season on strong buying of Emaar shares, an indication that the market is looking up, analysts said.

Dubai's benchmark index gained 2.26 per cent to close at 466.86 points with all indices going up.

Turnover touched a healthy Dh2.51 billion with some 307.31 shares changing hands in deals totalling 15,403.

"Emaar as always was the hot stock but there were huge volumes on some others such as Amlak and Dubai Islamic Bank that saw gains to push the market up," a fund manager in Abu Dhabi Commercial Bank said. "The over two per cent gain in the index and 18 gainers at Dubai Financial Market on the first day after the dull summer period presents a rosy picture for the markets."

Emaar touched a high of Dh14.55 and a low of Dh14.25 before closing at Dh14.45. Expectedly, Emaar (Dh1.34 billion) accounted for over a half of the DFM turnover in volumes of 93.2 million.

"There was continuous buying in Emaar's shares that raised the price to Dh14.45 and it lifted the market."

Dubai Islamic Bank saw strong trading to finish among the top traded stock and top gainers. The scrip closed at Dh11.45, up 5.53 per cent.

The Abu Dhabi Securities Market index closed at 3610.51 points, up 0.38 per cent. Turnover touched Dh208.92 million in volumes of 52.53 million and trades totalling 2513. The breadth of the market was positive with gainers outnumbering losers 21:12.

"Most prices in Abu Dhabi were up although volumes weren't high. Anyway, one never sees steady trading in Abu Dhabi," said a stock analyst with an investment bank here.

Dana Gas saw impressive turnover (Dh343 million) and so did Abu Dhabi Islamic Bank (Dh311 million), RAK Cement (Dh271 million) and blue chip Etisalat (Dh261 million). Stocks such as Finance House and RAK Cement went up over eight and seven per cent respectively.

"The season has begun on a bright note with investors showing interest again. There are also new investors coming in not only locally but from Saudi Arabia as well. We don't see any negative signs," said the stock analyst.

Sorouh Real Estate, currently involved in a controversy over its second quarter results, was up 0.3 per cent.

"The market doesn't seem to be affected by the row between Sorouh and its auditors but the company should announce its second quarter results soon," he said.