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Emaar lifts Dubai index to largest one-day gain |
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9/22/2008 10:20:50 AM |
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A resurgent Emaar propelled the Dubai bourse to its largest one-day gain for more than eight months yesterday.
The Dubai Financial Market jumped 9.87 per cent to 4,310 points as four of its five largest stocks made double figure gains.
Emaar was the undoubted star, surging a maximum 15 per cent to Dh8.05, its best finish since September 10.
"Emaar increase shows that there were some foreigners wanting to cover short positions, while people who sold out in Emaar over the past two months also bought back," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.
"It's perhaps a sign that we've found the bottom of the market, although it's too early to say for certain."
Dubai's turnover was Dh2.6 billion, the highest total for more than five months. Emaar accounted for Dh7.7 million, followed by Ajman Bank's Dh259m. Union Properties and DFM Company both also claimed trading worth more than Dh200m as the latter increased by 14.8 per cent and the former by 12.3 per cent. Significantly, foreigners were net buyers of Dh216m of shares yesterday, having collectively offloaded Dh724m last week. Trading by overseas funds accounted for a fifth of Dubai's turnover yesterday, while this figure was closer to one-third during last year's fourth quarter bull run.
"Foreign funds follow the flow, so they came back into the market with the local institutions," said Mohamed Alami, Naeem Shares and Bonds international desk manager. "Yesterday's volumes were phenomenal and I expect to see increased stability in the market. Dubai's blue chips saw decent turnover. Most stocks moved in line with the market, which is decided by the heavyweights."
Unsurprisingly, the biggest victims of Dubai's 2008 slump were among yesterday's best performers. Dubai Islamic Bank and Arabtec leaped 14.9 and 12.7 per cent respectively, while Shuaa Capital surged 14.8 per cent. These stocks have typically have the highest percentage of non-UAE shareholders, with the exodus of overseas capital driving their decline.
Analysts are bullish about Emaar's medium term prospects, with the embattled property developer now poised recoup more of its recent losses. Emaar may have enjoyed its largest ever one-day rally yesterday, but it has fallen by almost half this year and closed yesterday on Dh8.05.
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Source: Business24-7.ae |
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