Dubai index soars to fresh four-year high
Dubai, April 23, 2013
Dubai ended the session above 2,000 points for the first time since November 2009 as positive sentiment, fuelled by earnings optimism, drove the market higher. The index advanced 1.8 per cent to 2,021 points.
Budget carrier Air Arabia jumped 4.1 per cent and Dubai Investments rose 3.6 per cent.
The index broke the key psychological 2,000-point barrier, fuelling hopes of a sustained upward trend. The exchange gained 1.7 per cent to 2,021 points, the first time it has traded above 2,000 points intraday since December 2009. The bourse hasn't closed above 2,000 since the end of November that year.
"If we break 2,000 with good turnover, it will point towards the second big rally of the year," says Marwan Shurrab, vice president and chief trader at Gulfmena Investments.
The number of shares changing hands reached 119 million in the first 90 minutes of the session - more than the total in the previous three sessions.
Dubai Islamic Bank rose 2.4 per cent, flirting with the three-year high it achieved on April 11. Dubai Investments climbed 4.5 per cent.
In Abu Dhabi, financials continued their upward trend, with Abu Dhabi Commercial Bank and First Gulf Bank climbing 5.8 and 1.3 per cent respectively.
The measure is 0.9 per cent higher at 3,180 points, its highest level since October 2009.
In Abu Dhabi, the measure gained 1.1 to 3,188 points, its highest finish since October 2009, with financial stocks once more leading the way.
Abu Dhabi Commercial Bank advanced 4.9 per cent to its highest close since August 2008 and Union National Bank rose 4.2 per cent.
First Gulf Bank advanced 2.3 per cent to Dh15.4, above a technical resistance level, according to Global Investment House.
"If it trades above Dh15.17, we expect it to continue rising and hit our price target of Dh15.63 and Dh16.2 in the coming trading sessions," it says in a note.
Qatar's benchmark posted its biggest one-day gain since January 3 as it climbed 1.1 per cent to 8,535 points.
Industries Qatar, which posted estimate-beating first-quarter net profit on Monday, jumped 4 per cent - its largest one-day advance for more than two years.
Egypt gained 0.8 per cent to 5,255 points. Heavyweight Orascom Construction advanced 1.5 per cent and Citadel Capital climbed 0.6 per cent. Saudi Arabia slipped 0.1 per cent to 7,118 points.
Kuwait ended 0.5 per cent higher at 7,174 points, while Oman climbed 0.2 per cent to 6,143 points.
Kuwait built further on the previous session's fresh 29-month high, gaining 0.6 per cent to 7,183 points. "The market continues to push forth towards new boundaries," said Fouad Darwish, head of brokerage at Global Investment House.
"The fear of a market selloff induced by profit taking is no longer as haunting as it use to be. But we also do not negate the possibility nor the need for a correction movement in the coming days," he added.
In Qatar, positive results for Industries Qatar boosted its share price, with the stock rising 3.8 per cent. Its gained support a 0.7 per cent advance on the wider bourse , which traded at 8,500 points.
Saudi Arabia opened flat at 7,123 points, while Oman gained 0.2 per cent to 6,141 points.-Reuters