Dubai shares hit 10-month high as oil prices jump 10%

Traders are seen at the Financial Market (DFM) in Dubai. Photo by Dennis B. Mallari

The Dubai Financial Market (DFM) general index hit a 10-month high on Tuesday morning, with investors upbeat on higher oil price and the health of the local economy.

The DFM stood at 3,622.28 points at 10.23am, up 20 points over yesterday’s close and well past the technical resistance of 3,605 points.

The Dubai rally is on the back of a spike in global oil prices, which have surged about 10 per cent in three days, with Brent holding above $48/barrel and WTI closing in on $46/barrel yesterday.

The last time the DFM closed 3,620 levels was in October 2015, after which it took a massive tumble to close at a low of 2,621.96 points on January 21, 2016.

In the seven months since then, the DFM has clawed back 1,000 points, with six shares surging by more than 50 per cent year-to-date.

Among the top gainers in 2016 YTD, Takaful House is up a massive 155 per cent since the beginning of the year. The share saw a spike of almost 69 per cent in the month of June 2016, followed by a rise of another 28 per cent in July 2016.

Second placed Gulf Finance House is up 80 per cent this year, gaining 20 per cent each in both February and March 2016.

Third-placed Gulf Navigation Holdings is up 72 per cent YTD, rising by a third in the first month of the year and another 20 per cent in April 2016.

Other notable risers this year so far are Dubai Parks and Resorts (up 63 per cent), Shuaa Capital (up 57 per cent) and Takaful Emarat (up 54 per cent).

Share price of market benchmark Emaar Properties is up more than 30 per cent YTD, with the master developer witnessing a share price rise of 10 per cent in July 2016 and has seen a 9 per cent spike so far in August.

Among the biggest losers this year are National General Insurance (down 49 per cent), Oman Insurance Company (down 35 per cent) and International Financial Advisors (down 30 per cent).