Dubai hits fresh 10-month high
Dubai, January 9, 2013
Dubai's bourse climbed to a fresh 10-month high and daily traded volumes also hit their highest in same time period as an economic recovery boosted investor sentiment.
Heavyweight lender Emirates NBD and courier Aramex rose 3.3 and 4.9 percent respectively. Emaar Properties added 0.5 percent and contractor Arabtec climbed 2.7 percent.
The emirate's index rallied 1 percent to 1,745 points, its highest finish since March 5. The market has jumped 7.6 percent so far this month.
"Given the speed of the rally, you may see some profit-taking but it is justified - we've seen credit rally and real estate recover," says Anastasios Dalgiannakis, institutional trading manager at Mubasher. "The only asset class lagging was equities and people are finally putting their money here."
Dubai's property market is gradually recovering as demand returns, following three years of slump. House prices in Dubai had plunged by over 50 percent from its peak in 2008.
More than 500 million shares are traded, the highest daily volume in 10 months.
Shares in National Central Cooling surged 14.7 percent to nine-month high, accounting for a more than a fifth of all shares traded on the market.
Traders say the move seemed exaggerated and lacked fundamental reasons.
Abu Dhabi's benchmark slipped 0.2 percent to 2,717 points, easing from an 18-month high.
Investors booked gains in Aldar Properties and Sorouh Real Estate, which slipped 3.1 and 3.8 percent respectively.
The two developers rallied on Tuesday after sources told Reuters the firms have reached initial merger agreement. - Reuters