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29 March 2024

Reflex rally pushes DFM to 2-month high

Published
By Sunil Kumar Singh

After weeks of sideways trading as investors kept away from the trading floor, Dubai Financial Market (DFM) zoomed to an almost two and a half-month high on Sunday on the back of brisk buying with the benchmark index shooting up 40.31 points or 2.69 per cent to close at 1,538.09.

The last time DFM had crossed this mark was on June 24 when the market closed at 1,538.98.

There had been a sustained rally since the market opened on the first day of the week, supported by a global uplift in stock markets on Friday as investors’ fears of a double-dip recession receded after a better-than-expected US jobs data.

All sectoral indices were on firm footing, except transportation that dipped by a marginal 0.13 per cent. Real state sector rose the most by 4.58 per cent.

Individually, Al Salam Bank –Bahrain was the top gainer, having risen by 6.46 per cent, after it announced on Sunday that it has recently provided £38 million in a unique Shari’a compliant mezzanine facility to refinance a landmark commercial property located in the heart of Canary Wharf, the financial district of London.

Other top gainers were Emaar, DFM, Arabtec, and Dubai Islamic Bank, among others. DP World’s shares rose 1.43 per cent.

Major decliners were Global Investment House and Aramex.

“After a long time buying in Emaar with a bounce in DFMGI [DFM General Index] offers ray of hope for further recovery in the local markets. Recovery in US markets also gave a boost to the positive sentiments. If such buying activity continues for few more sessions then we may expect the players to get back in the markets and will shore up the volumes,” Shiv Prakash, Head of technical analysis with CapitalTA, a trading advisory firm on Indian, UAE, Forex, and commodity markets, said.

The market volume also rose almost double from Thursday’s 52 million to around 103 million, along with turnover which moved up to Dh207 million from Thursday’s Dh84 million.

Out of 27 stocks traded, 23 advanced with just two declines, while two remained unchanged.

Abu Dhabi Securities Exchange (ADX) was also up 12.74 points (up 0.51 per cent) to close at 2,507.26.

Construction, insurance, consumer, industrial, and energy sectors moved down, while telecom, banking, and real estate stocks surged.

Trading volume, however, jumped from Thursday’s 39 million to around 59 million, while the value of shares traded dipped from Thursday’s Dh126 million to around Dh102 million at the end of trading.