DFM market capital gains Dhs2.85b, index jumps to highest level since ’15

Mohanad Dagher, Staff Reporter

The Dubai Financial Market (DFM) strengthened its market gains at the end of Thursday’s session, as its market capital gained about Dhs2.85 billion and its index jumped to the highest level since August 2015.

The market capital of stocks listed in Dubai rose from Dhs642.617 billion at the end of Wednesday’s session, to Dhs645.47 billion, at the end of Thursday’s session, showing a growth of 0.44 per cent.

With those gains, the DFM’s index rose by 0.43%, reaching at the closing level 3734.26 points, which is its highest level in 8 years, approximately 96 months.

At the end of trading, the DFM recorded about 419.03 million shares, achieving a value of Dhs587.79 million, through 11.74 thousand deals.

The Emaar Properties’ share increased by 1.8 per cent, reaching Dhs6.30, with transactions of nearly 20 million shares. While the Union Properties’ share increased by 5.1%, reaching Dh0.307.

The Emirates NBD and Gulf Navigation rose by more than 1%. While the share of GFH Financial declined by 3.6%.

The most heavily traded stock was Ithmaar Holding, which rose by 14.74 per cent, reaching the level of Dh0.249, with transactions of more than 126 million shares.

The Abu Dhabi Securities Market index decreased by 0.1%, reaching the level of 9,385 points, with transactions of a total value of Dhs874 million, coinciding with the decline in the share of “ADNOC Gas” by 2.3 per cent, to Dhs3.03.

The share of “GFH Financial Group” dropped by 2.8 per cent, and the share of “Dana Gas” decreased by 1.2 per cent, while the share of “Multiple Play” group decreased by 1.6 per cent to Dhs3.17.

 The Alpha Abu Dhabi Holding’s share decreased by 0.1 per cent to Dhs18.0, while share of “e&” group, “formerly etisalat,” declined by 0.4 per cent.

The most heavily traded stock was Ishraq Investment, which rose by 1.8 per cent to 0.58 points, with transactions of approximately 23 million shares.

George Pavel, general manager of Capix.com, reported that the stock market in Dubai was somewhat volatile, but remained in an upward trend, indicating that its upward trend may be fueled by the Fed’s policy.

“It is possible that strong local fundamentals will continue to support the performance of the market, yet some operations of profit taking may be witnessed in the next few sessions,” he added.

He further explained that the Abu Dhabi stock market remained near its lowest levels as traders remained cautious with the increasing uncertainty on the global scene.

For his part, Mohamed Atta, a stock expert, explained that fluctuations in oil prices might continue to affect the market, despite the strength of the local economy.

He also pointed out that the local stock markets may maintain its soaring trend in general, despite the possibility of temporary price corrections.

The Dubai Financial Market recently announced the offering of futures contracts on its General Index (DFMGI), which includes the most liquid and largest companies listed on the DFM.

Trading futures contracts on the DFMGI offers investors the opportunity to access one of the best performing indices in the world comprising DFM’s largest and most liquid stocks, including the recently successfully listed Empower, Dewa, Salik, and others, as well as the region’s leading blue-chip companies such as Emaar and Aramex.

DFMGI will provide strong diversification and hedging opportunities for both retail and institutional investors and drive more professional investors’ participation in the marketplace.

DFMGI futures are DFM’s latest innovative offering to internationalize Dubai’s financial markets and promote market liquidity and depth. They allow investors to make gains when the index falls and rises and magnify gains through the use of leverage.