Dubai shares at 5-and-a-half-year high

Update: The DFM closed at 4,318.48 on Monday, March 24, 2014, down 0.65% over yesterday's close. 

Earlier Story

Dubai’s benchmark stock index has been up for seven straight sessions now, and stood at 4,359.13 at 11am UAE time on Monday, a level last seen in September 2008.

The Dubai Financial Market General Index is now up 168.66 per cent in 15 months, climbing up from its close at 1,622.53 on December 31, 2012.

The DFM General Index is already up by more than 30 per cent in the first three months (until March 24) this year, with real estate and construction stocks leading the charge as investor confidence has surged above pre-slowdown years.

Shares in construction major Arabtec Holdings today made their 52-week high, surging to Dh5.7 apiece as the market gains further momentum. Arabtec shares surged 54.29 per cent in 2013, and are up 97.56 per cent in less than three months this year.

On the other hand, real estate developer and market benchmark Emaar Properties is trading at Dh9.8 per share, a whisker short of its 52-week high of Dh9.9 per share. Emaar share price is up 28.67 per cent in under three months this year, over the 103.73 per cent gains it saw in 2013.

Comparatively, the Abu Dhabi Exchange is up 11 per cent in the first 3 months (until March 24) this year while the Saudi Tadawul is up 10 per cent. The Bahrain Stock Exchange is up 12 per cent, Muscat Securities Market is up just 1 per cent, the Qatari bourse is up 8 per cent and the Kuwait market is in the red.

Globally, the Dow is up a mere 0.5 per cent this year so far, Nasdaq is up 4.2 per cent, the S&P 500 index is up 2.68 per cent, and the FTSE 100 is down 0.75 per cent. In Asia, the Bombay Sensex is up 4.49 per cent, Nikkei 225 is up 8.73 per cent, Singapore is up a mere 0.6 per cent while Shanghai is down by a percentage point this year so far.

The UAE and Qatar were last year elevated to emerging market status by the global index compiler MSCI, and the reclassification will take effect in May this year. The reclassification is set to further boost foreign fund-flow to the DFM and the ADX as the UAE economy achieves a growth sweet spot.

Last year, 12 shares listed on the DFM more than doubled their value, led by Union Properties, which surged by a massive 201.27 per cent during the year. UP was followed by Dubai Investments (up 192.25 per cent), Deyaar Development (+186.93%), Al Salam Bank-Bahrain (+170.75%), and Dubai Islamic Bank (+166.67%), rounding up the Top 5 DFM gainers of the year.

The other shares that saw a more than 100 per cent jump in their prices in 2013 were Gulf General Investment Co (+149.43%), the market’s own listing DFM (+142.16%), Dar Al Takaful (+138.55%), IFA (+128.81%), Emirates NBD (+122.81%), Drake and Scull International (+104.55%) and Emaar Properties (+103.73%).

This year, the top gainer so far is Gulf General Investment Co, which is up 147.7 per cent in less than three months. GGICO is followed by Arabtec (up 97.56%), Union Properties (+73.95%), Al Salam Bank-Bahrain (+60.58%) and Al Salam Bank-Sudan (+51.5%), rounding up the top 5 gainers in 2014 so far.
 

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