Dubai stocks surge 20%

Prices of shares listed on the Dubai Financial Market (DFM) have surged by more than 20 per cent in 2012 so far, making Dubai investors richer by a neat Dh12.5 billion in about 10 months, Emirates 24/7 research reveals.

 

The market capital of all shares listed on the DFM was Dh111.96 billion as of January 2, 2012, the first trading day of the year, and has since surged to Dh124.47 billion (as of November 7, 2012).

In fact, the Dubai market cap dipped to a 2012 low of Dh107.85 billion on January 16, 2012, and rose to Dh134.22 billion in less than two months on March 4, 2012. The share price volatility continued until the first half of the year, but has since stabilized, with prices on a steady climb since June 2012.

Overall, share prices on the DFM are up 20.43 per cent year-to-date, the most among other GCC markets.

Among primary market listings on the DFM, National Central Cooling Company, better known as Tabreed, has seen its stock price surge 150 per cent during the year, while the share price of Dubai Islamic Insurance and Reinsurance Company (Aman) has jumped 146.5 per cent in the same period, followed by Islamic finance provider Tamweel, which has seen its share price more than double during the period.

Dubai-based construction firm Arabtec Holding and property major Deyaar Development have seen their share prices climb about 65 per cent each, rounding off the Top 5 gainers of the year so far.

Shares on neighbouring Abu Dhabi Exchange (ADX) performed the next best among Gulf markets, surging 11.59 per cent this year, data shows.

Market cap of the ADX has gone up from Dh231.23 billion on January 2, 2012, to Dh259.94 billion on November 7, 2012. While the 2012 low of

Dh222.27 billion made on the ADX on January 17, 2012, was around the same time as that on the Dubai market, the steadily rising ADX has made three successive 2012 highs in November, with November 7 as the most recent high.

On the ADX, share price of property major Sorouh Real Estate Company has seen the most gains among primary market listings, rising by 57.65 per cent in 2012, followed by drugs manufacturer Gulf Pharmaceuticals Industries (up 47.98 per cent YTD), Aldar Properties (+45.65 per cent), First Gulf Bank (+37.22 per cent) and Eshraq Properties Company (+34.78 per cent).

Saudi Arabia, the largest Arab market, has risen 8.35 per cent this year so far, climbing from SAR1.264 trillion on January 1, 2012, to SAR1.397 trillion on November 6, 2012. In line with its UAE counterparts, market cap of the Saudi Tadawul made its 2012 low (SAR1.259 trillion) on January 17, 2012, while it made its YTD high (SAR1.552 trillion) on April 1, 2012.

Other GCC markets have, in fact, failed to break even this year so far, with share prices on the Muscat Securities Market down 0.30 per cent YTD, Kuwait down -1.37 per cent so far in 2012 and share prices in Doha down 2.45 per cent in 2012 year-to-date. Bahrain has, so far, emerged the worst performing Gulf market for 2012, with share prices down 6.66 per cent until today.