Dubai stocks hit 56-month high
Dubai, August 5, 2013
Dubai's bourse extended gains to hit a fresh 56-month high in heavy retail investor activity as upbeat earnings boosted sentiment.
The index climbed 0.8 percent to 2,645 points, its highest level since November 2008. Many analysts say that with the index now up 63 per cent year-to-date, it is in for a significant pull-back, though there are so far no clear technical signs of that and the charts remain long-term bullish.
"Most of the blue-chip companies have reported second-quarter earnings and although they were solid, I think they are priced in," says Mohab Maher, senior manager of institutional desk at Mena Corp. The market is heading towards a correction in the coming two weeks, he added.
The market is dominated by retail activity as investors look for short-term gains. Dubai Investments Co and Dubai Financial Market climbed 2.1 and 2.5 percent respectively, the two most active stocks.
Drake and Scull (DSI) shed 2.5 percent, trimming year-to-date gains to 66 percent. It posted a second-quarter profit of 52.2 million dirhams ($14.2 million), up 63.1 percent from a year ago but in line with analysts' forecasts.
Abu Dhabi's measure eased 0.2 percent to 3,921 points, trimming year-to-date gains to 49 percent.
Elsewhere, Saudi Arabia's benchmark ticked up 0.1 percent to 7,980 points. Oman climbe 0.3 percent to 6,699 points. Qatar and Kuwait were little changed. - Reuters