Investors make a killing as some Dubai shares up 60% in a month
The Dubai Financial Market (DFM) general index surged 2.4 per cent to close at 3,170.3 points yesterday, erasing all year-to-day losses.
The index closed last year at 3,151 points on December 31, 2015, before losing 530 points in three weeks.
The DFM index has now rallied almost 550 points, or 21 per cent, in a month. The index stood at 2,621.96 points, down 16.8 per cent YTD, on January 21, 2016.
Investors who may have taken positions in the market a month ago have potentially gained more than 20 per cent on their investments.
Prices of some shares on the Dubai bourse have surged almost 60 per cent in one month.
Gulf Navigation, which made a 2016 low of Dh0.56 per share on January 17, 2016, closed yesterday at Dh0.89 a share, marking a 59 per cent gain in a little over a month.
Gulf Finance House, which closed at Dh0.45 per share on January 17, closed at Dh0.7 per share yesterday (February 22), marking gains of more than 55 per cent in about a month.
Share price of market benchmark Emaar Properties fell down to a 52-week low of Dh4.22 per share on January 21, 2016. Yesterday’s closing price of an Emaar share (Dh5.75) marks a gain of more than 36 per cent from those levels.
Share price of Dubai Investments closed at Dh1.53 on January 27, and has surged more than 26 per cent since then, closing yesterday at Dh1.93 per share.
Investor sentiment, which had been dampened due to global oil prices slipping to a 13-year-low on January 26, 2016, has bounced back as oil prices have rallied remarkably from those lows.
Oil price rebounded as much as 7 per cent yesterday after the International Energy Agency (IEA) said in its medium-term outlook that US shale oil production was expected to fall by 600,000 barrels per day (bpd) this year, and another 200,000 bpd in 2017.
US benchmark West Texas Intermediate (WTI) hit $26.32 a barrel on February 10, close to a 13-year low of under $26.
A barrel of WTI is currently trading at $31.62, up 20 per cent from those lows.
Brent North Sea crude, which fell to $30.17 a barrel about 10 days ago, is currently trading at $34.47, up 15 per cent from the lows.
Supply and demand dynamics in the delicately-balanced oil market have resulted in a glut, pushing prices to multi-price lows.
Until recently, both Opec and non-Opec exporters of oil were seen pumping record levels of oil, adding to the glut in a low-demand market.
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