Local financial markets recorded strong increases in the beginning of the week, yesterday, with the support of the return of economic activities to work by 100% in the Emirate of Dubai, and positive news on the level of an agreement to extend oil production globally.
The market value of the listed companies rose yesterday by 16.4 billion dirhams, while the total value of trades in the "Dubai Financial" and "Abu Dhabi Securities" markets reached about 800 million dirhams, which is the highest daily average since the beginning of 2020 until now.
Two financial experts confirmed that yesterday's transactions witnessed real and diversified purchases, noting that investor appetite increased significantly, supported by the return of economic activity in Dubai.
In detail, the local financial markets achieved strong increases in the beginning of the week, yesterday, with the support of the return of economic activities to work by 100% in Dubai, as well as the global markets that recorded the highest rates in two weeks, and the extension of oil production cuts for an additional month reached by the organization The oil exporting countries (OPEC) and its allies known as the "OPEC Plus" coalition.
The general index of the Dubai Financial Market closed the transactions up by 4.6%, while the Abu Dhabi Stock Exchange recorded an increase of 2.37%.
The total value of trades in both markets reached about 800 million dirhams, which is the highest daily average since the beginning of 2020 until now.
In turn, the market value of listed companies rose yesterday by 16.4 billion dirhams, continuing to offset its losses during the declines that accompanied the beginning of the outbreak of the emerging Corona virus (Covid-19).
Dubai Financial Market
According to the data of the two markets, the Dubai Financial Market Index closed 4.6% higher at the level of 2133 points, with transactions totaling 496 million dirhams.
Shares of 29 companies out of 33 companies traded rose, while the shares of three companies decreased, and one company remained stable.
Dubai Islamic shares closed up 9.5% at 4.03 dirhams, with trades exceeding 20 million shares, while Emirates NBD rose by 4% at 9.33 dirhams, trading close to six million shares.
The shares of Emaar Properties topped the list of the most heavily traded shares, increasing by 6.1% at 2.77 dirhams, with trading exceeding 43 million shares.
Abu Dhabi Securities
In turn, the general index of the Abu Dhabi Securities Exchange ended yesterday's session, up by 2.37% at the level of 4405 points, with transactions totaling AED 301 million.
Abu Dhabi Islamic Bank closed 10% higher at 3.78 dirhams, with trading close to 27 million shares, while Abu Dhabi Commercial Bank rose by 5.6% at 5.25 dirhams, and trading close to five million shares.
The expert in financial markets, Abdel-Qader Shaath, said that yesterday's transactions witnessed real and diversified purchases, which were evident in the large trading volumes, which is the highest in a day since the beginning of this year, supported by positive news accompanying the resumption of economic sectors in the Emirate of Dubai by 100%, the matter That reflected on the performance of the general index of the Dubai Financial Market, achieving strong gains, adding about 100 points above the closing session of last Thursday's trading session.
Shaath emphasized that investor appetite also increased significantly in both markets, and it seemed clear that the fear and the return of confidence had receded, which is a positive thing that our local markets badly need.
Low risk investment
For his part, the expert in financial markets, Walid Al-Khatib, said that the low price levels are a low-risk investment, and this prompted investors to buy strongly yesterday, with the support of the return of conditional economic activity in the Emirate of Dubai, in addition to the US jobs data that raised the Dow Jones “Strongly, this has had a positive impact on the local financial markets.
He added that the "OPEC Plus" agreement to extend production cuts also contributed to raising investor sentiment and pushing prices to almost higher levels in all sectors.
The “Takaful” company listed on the Dubai Financial Market disclosed the size and percentage of its accumulated losses and the means of handling them.
The company said, in a statement on "Dubai Financial", that the amount of accumulated losses amounted to 58.03 million dirhams, constituting 38.7% of its capital of 150 million dirhams.
Dubai and Abu Dhabi markets registered 16.4 billion dirhams in market gains.