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05 June 2023

Dubai index rebounds on record turnover

The Dubai Financial Market posted a 5.38 per cent gain on Thursday to close at 1,601.24 points. (AFP)

By Mohamad Al Kady

Dubai Financial Market has rebounded sharply adding 81.80 points, or 5.38 per cent, to close at 1601.24 in the most active session within a year.

The DFM index went through its critical resistance channel at 1,500 points and moved towards the next resistance at 1,650 within two sessions, increasing expectations that the index can continue its bullishness on the near term to its next resistance channel at 1,750-1,800 points.

The market opened up and continued its sharp upward trend throughout the session with a continuous increase in turnover.

The trade volume hit 845.6 million shares, the highest level in a year, while trade value jumped to Dh1.14 billion, the highest level in more than three months. New liquidity by both high net worth local individuals and institutional investors pushed the market higher as all active stocks during the session advanced by almost up limits.

DFM, Emaar and Arabtec stocks dominated around 60 per cent of the total turnover. DFM stock added 14.51 per cent to close at Dh 1.42, Arabtec advanced 12.57 per cent to Dh 1.88, and Emaar surged by 11.17 per cent to close at Dh 2.09. GGICO was the leading gainer during the session after it added 14.70 per cent to close at Dh 2.34.

Trade volume on Emaar stock surged to 127.6 million shares, which is a historical high volume on the stock. This increasing volume on Emaar is giving indications of a strong rebound in Emaar's price, which would support the DFM index during the next few session.

In the capital, Abu Dhabi Securities Exchange continued its calm trading at moderate turnover. The ADX added 46.73 points, 2.12 per cent, and ended at 2250.01 points, just its resistance levels.

A total of 152.6 million changes changed hands at a value of Dh 289.5 million. Real estate and energy stocks led active players during the session with Aldar, Sorouh and Dana Gas dominating 50 per cent of the turnover.