DFM at 4-month high on FTSE announcement

Global index provider FTSE Group’s announcement on Thursday to include the UAE in the FTSE Global Equity Index Series as a secondary emerging market, cheered investors on Dubai Financial Market (DFM) after a weak start in the morning, with the benchmark index climbing almost 4-month high to touch 1,647.03.

All sectors posted gains with the utilities sector rising the most by 4.30 per cent.

Top gainers included Arab Insurance Group, DP World, Emaar Properties, Gulf General Investments Company, Tabreed, Dubai Islamic Bank, among others. 

The market volume also rose to around 162 million from Wednesday. The turnover also rose from Wednesday’s Dh186 million to around Dh316 million.

The FTSE Group announced on Thursday that it is implementing the changes announced in its September 2009 Country Classification Annual Review, after the markets close on September 17.

As per the country classification changes, the UAE would be included in the FTSE Global Equity Index Series as a secondary emerging market, a statement on the FTSE Group’s website said.

FTSE’s Country Classification Annual Review is the process by which stock markets are classified as having Developed, Emerging or Frontier status within the FTSE Global Equity Index Series.

“DFM index was trading negative on low volumes until the mid session later on FTSE’s confirmation on the addition of the UAE as a secondary emerging market within its Global Equity Index Series. This news was long awaited and gave a boost to the market sentiments. This act proves that the UAE markets continue to attract international attention,” Shiv Prakash, Head Technical Analyst, CapitalTA, a trading advisory firm on Indian, UAE, Forex, and commodity markets, said.

He said DFMGI managed to stay above the support levels of 1620 in the last two sessions and picked up smartly to re-test the resistance levels of 200 day moving average at 1645 and closed bullish at 1647.03 up by 1.22 per cent.

“The confidence level improved on the FTSE confirmation but the volumes are still seen lower and need a further increase for sustainable recovery. Profit taking can be seen only if markets close below 1620 marks,” he added.

Follow Emirates 24|7 on Google News.