Positive news related to Dubai launching the third stimulus package worth 1.5 billion dirhams, with the aim of enhancing the financial liquidity of companies and supporting the continuity of its business, local financial markets, gave market gains of five billion dirhams on the first day of its weekly trading yesterday.
Two financial analysts told «Emirates Today» that the remarkable thing in yesterday’s trading session was the role of incentives announced by the Dubai government in supporting the market and absorbing the effect of lowering the rating of some of the leading shares.
In turn, entrepreneurs agreed on the positive effects that the new stimulus package will have on all sectors, to support corporate liquidity and ensure business continuity.
They emphasized that Dubai's incentives are very encouraging, and they came comprehensive and integrated, and enhance the partnership of the public and private sectors, in addition to helping to accelerate the economic recovery, pointing out that it is a message of reassurance to businessmen, assuring them that the government supports them in these exceptional circumstances.
Dubai Financial Market
According to market data, the general index of the Dubai Financial Market rose yesterday by 0.17% at the level of 2086 points, with transactions totaling 157 million dirhams.
Shares of 13 companies out of 31 companies were traded, while shares of 13 companies decreased, and shares of five companies remained stable.
In turn, “Arabtec” shares closed 8.4% higher at 0.73 dirhams, with trading close to 29 million shares, while “Emaar Properties” fell 1.1% at 2.72 dirhams, and trading exceeded seven million shares.
The «Damac Real Estate» share rose by 11.6% at 0.85 dirhams, and trading close to 21 million shares, while «Amlak Finance» rose by 8.4% at 0.33 dirhams, and by trading close to 21 million shares.
"Union Real Estate" topped the list of the most heavily traded stocks, up 5.1% at 0.29 dirhams, and trading exceeded 59 million shares.
Abu Dhabi Securities
In the capital market, the general index of the Abu Dhabi Securities Exchange closed 0.48% higher at the level of 4316 points, with transactions totaling 55 million dirhams.
Shares of “Ishraq Investment” rose by 4.9% at 0.23 dirhams, and trading exceeded three million shares, while “Taqa” shares rose by 2.9% at one dirham, and by trading close to 15 million shares.
Financial analyst Mohamed Ali Yassin said that yesterday's trading witnessed a focus on some small stocks and horizontal movements of indicators in general, but it is interesting that the incentives announced by the Dubai government supported the market in absorbing the impact of the downgrade of some of the leading shares, where prices were not affected.
He emphasized that the increase in stimulus packages will be reflected in the performance of the economy in general during the coming period, and therefore the matter will be applied to the stock market.
In turn, the financial markets expert, Dean Kanaan, said that the performance of the two markets came positively and took a cross-track, and he succeeded in absorbing the evaluation decrease that was made on a number of shares, as their price was not affected.
He emphasized that Dubai's launch of the new stimulus package came at an appropriate time, and it is expected that it will move the wheel of small and medium companies more, and contribute to compensating for the negative repercussions left by the spread of the new Corona virus for more than three difficult months.
Caring for the interests of the private sector
The Director General of the Dubai Chamber of Commerce and Industry, Hamad Buamim, said that the new stimulus package recently approved by Dubai came to reflect the interaction of leadership with global changes and challenges facing the business community, as well as the leadership's eagerness to preserve the interests of the private sector.
Bouamim confirmed that the decision came at the right time with the arrival of tourists to Dubai, noting the positive effects that the decision will have on the tourism sector to ease business, support its liquidity, and ensure its continuity and the quality of its services.
He stressed that supporting and mitigating merchants is a top priority when driving.
Bouamim stated that the incentive package was comprehensive and integrated to support all sectors, which enhances the partnership of the public and private sectors, and their combined efforts in facing the pandemic and its repercussions on the business sector.