DFM continues to build on positive momentum

Dubai Financial Market (DFM) has extended its gains so far this month, with a strong upside movement yesterday. The DFM index has jumped 181.52 points, 11.4 per cent, since the beginning of March. The market also narrowed its losses since the beginning of the year to 1.62 per cent.

There are high expectations that the current rally will continue during the coming sessions to break through its previous high of 1800 points.

The rally in the market came amid unconfirmed reports about a very near-future agreement on Dubai World debt restructuring, which attracted individual and institutional investors, mostly local, to buy from low levels in anticipation of a strong uptrend.

Leading active stocks were also the top gainers on the DFM so far this month, with bellwether Emaar Properties, the top gainer, as it advanced 29.2 per cent this month to close at Dh3.85 yesterday. DFM stock was the second top gainer adding 27.6 per cent to Dh1.85.

However, heavyweights in the banking sector are still lagging in the current rally, contrary to expectations that banking stocks would be the first gainers of Dubai World restructuring plan. Emirates NBD and DIB witnessed good rallies yesterday but they are still underperforming other leading stocks in the market.