Dubai: Dubai stocks jumped nearly 3 per cent on Thursday, its highest daily gain in more than 3 months, as traders continued to resort to bargain buying in the backdrop of positive leads from global peers.
The Dubai Financial Market General Index closed 2.91 per cent higher at 3,273.30, recovering from the previous session’s losses. The index has been trading near its keenly-watched 3,000 level in the past few sessions.
“I don’t see any changes in fundamentals apart from the Fed news that made it clear that there will be an increase in December, and investors in the western market took it positive,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities, adding “the market here took leads from overnight trading.”
Arabtec ended more than 5 per cent higher at Dh1.20, while Emaar Properties closed more than 3 per cent higher at Dh6.17. Air Arabia ended more than 4 per cent higher at Dh1.25. Dubai Islamic Bank closed more than 4 per cent higher at Dh6.25.
Out of a total of 33 stocks traded on the exchange, shares of 27 firms rose, while shares of other 3 firms fell.
“If on Friday, markets go higher, then on Sunday, we might see a gap up [higher] opening on Sunday,” said Manibhandu.
“We have all seen how results have come in, so there is nothing else to surprise. The only thing that people were playing for was etisalat. To trade etisalat for inclusion in MSCI at this price is too dangerous,” Manibhandu added.
Etisalat ended 0.94 per cent higher at Dh16.10, after gaining more than 55 per cent since the start of the year.
Investors would also shift out of etisalat and move in large cap stocks on the MSCI index like Dubai Islamic Bank and Emaar Properties in Dubai, and First Gulf Bank in Abu Dhabi.
Investors would also be eyeing for fresh leads from oil after the end of the results season.
In Abu Dhabi, the general index closed 1.51 per cent higher at 4,260.06.
First Gulf Bank ended almost steady at Dh12.20, while Eshraq Properties closed 1.96 per cent higher at Dh0.52. Union National Bank closed 14.95 per cent higher at Dh5.92.
Out of a total of 31 stocks traded on the exchange, shares of 23 firms rose, while other three fell.
Elsewhere in the Gulf, Saudi’s Tadawul index closed 1.16 per cent higher at 7,034.08, while Muscat Securities MSM 30 index closed 0.03 per cent lower at 5,795.81. Kuwait Stock Exchange index closed 0.48 per cent higher at 5,725.41.
