Dubai index breaches 5,000 in almost 6 years

A sharply positive investor sentiment continued on the Dubai bourse on Tuesday morning as the Dubai Financial Market General Index crossed the 5,000-point mark within first hour of opening, led by real estate stocks.

The index, which was closed at 4,984 on Monday, jumped 44 points to 5,028 at 10.55am, led by DFM, Deyaar, Emaar, Arabtec and Salam shares. The last time that Dubai index saw levels above 5,000 points was in August 2008, when the global financial crisis led to a credit crunch and a sharp fall in global equity markets.

This morning, Emaar Properties, Deyaar Development and Dubai Financial Market shares touched 52-week highs in the early morning trade.

Dubai-based property developer Emaar was trading 1.4 per cent higher at Dh10.75. Deyaar shares were also up by half a per cent to Dh1.78 per share while DFM jumped 4.67 per cent to trade at Dh3.77 per share.

Analysts have attributed steady increase in UAE share prices due to Dubai’s Expo 2020 win and growth across most of major economic indicators.

On the back strong growth, the International Monetary Fund and Ernst & Young have raised UAE’s growth forecast for this year. IMF said the UAE is likely to grow 4.4 per cent this year compared to 3.9 per cent while E&Y projected 4.3 per cent average growth over the next 4 years.

The upbeat mood could also be seen at Abu Dhabi Stock Exchange, which was up by 0.20 per cent in the first hour of the trade.

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