Stocks recover amid glow of second financial boost

The UAE's stock markets recovered yesterday as they tracked overnight gains on Wall Street. Market sentiment was boosted by Wednesday's announcement by Dubai Government of further economic stimulus measures, and real estate stocks played a major role in pushing up the indices. Dubai Financial Market, after three sessions of downward movement, regained 29.89 points to reach 1,617.57, a 1.88 per cent rise over the previous close of 1,587.67. Abu Dhabi Securities Exchange rose 24.24 points, or 0.96 per cent, to 2,542.97. Barring the insurance, consumer and industrial sectors, all the remaining verticals closed higher. "The markets started on a positive note after stable US trading and strong Asian dealing and were buoyed by news of further stimulus plans from Japan," Mathew Wakeman, Managing Director for Cash and Equity-Linked Trading at EFG-Hermes, told Emirates Business . "Comments from the Department of Finance during the session concerning the use of the $10 billion [Dh36.73bn] bonds proceeds were supportive of the property sector but didn't prompt investors to take the stocks even higher. "Investors will wait to see more details about the companies receiving the cash injections and the associated terms before they get excited, especially ahead of results in the next few weeks." The DFM General Index opened higher at 1,600 points as realty stocks propelled trading in a positive direction. Emaar gained 3.76 per cent and Union Properties was up five per cent, while Commercial Bank of Dubai rose by 4.79 per cent and Tabreed recorded a 8.95 per cent rise, which helped to push up the index. Meanwhile, on the ADX Aldar was up 3.31 per cent and Sorouh 0.07 per cent. Overnight gains on Wall Street and positive economic data from Japan boosted investor sentiment and the Asian markets rebounded strongly, followed by the GCC markets. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .