DFM opens on positive note

Trading on Dubai Financial Market (DFM) opened on a positive note after a weeklong Eid holidays. All sectors except insurance were looking up.

At 12.30 pm, the benchmark index was 1,689.85, up 2.94 points or 0.17 per cent from its previous close. Nine stocks advanced and 13 declined. Stocks that were trading up included Gulf General Investment Company (GGICO), Arabtec, Tabreed, DFM, Drake and Scull International and Emaar.

Analysts say there will be a moderate upsurge, but it will not be sustained.  But all depend on how other markets behave.

Market sentiments seem to be getting support from good financial results being announced by companies. GGICO, for instance, announced in a statement posted on DFM website a net profit of Dh 53.5 million for the three months period ending September 30, compared to Dh22.2m for the same period last year.

Arab Insurance Group (Arig), one of the largest reinsurance providers in the Mena and listed on the stock exchanges in Bahrain, Dubai and Kuwait, announced that higher technical returns from reinsurance and a rally in the world financial markets firmly placed the company back into profitability at the end of the third quarter following a dip in investment returns at the half-year point. Arig said the net profit in Q3 amounted to $11.5m (compared to $16.9m in Q3 last year) - a strong recovery following a $2.8m loss recorded at mid-year.

Abu Dhabi Securities Exchange (ADX), however, was down by 7.66 points.