The market value of the shares of publicly traded companies boosted their earnings balance by 5.5 billion dirhams
Dubai Financial is at its highest level in 5 months
The performance of the capital markets was generally positive, especially the Dubai Financial Market. Photography: Patrick Castillo
Muhammad Ali Yassin: "News of mergers and the listing of investment fund units supports the positive market."
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The local financial markets rose yesterday, in the beginning of the week’s trading, especially the Dubai Financial Market, which reached its highest level in more than five months, with the support of leading stocks and investor confidence.
With the positive start of trading, the market value of the traded companies ’shares strengthened their gains balance by 5.5 billion dirhams at the close of the session.
Two financial experts told Emirates Today that it can be said that the recovery period has begun, especially with the continued expansion of business and economic openings, pointing out that the performance of financial markets yesterday was positive, especially the Dubai Financial Market.
Dubai Financial Market
Yesterday, the Dubai Financial Market general index rose by 1.29% at 2,183 points, with transactions worth 250 million. Shares of 19 companies out of the 31 companies whose shares were traded, while the shares of eight companies declined, and the shares of four companies remained unchanged.
In turn, the share of «Emaar Properties» closed up 0.7% at 2.8 dirhams, in transactions of nearly 18 million shares, while the share of «Deyaar Development Company» rose by 1.8% at 0.29 dirhams, and with transactions that exceeded 29 million shares.
Amlak Finance increased by 1.2% at 0.34 dirhams, and traded nearly 11 million shares.
In the list of the most traded stocks, Union Real Estate came down by 0.9% at 0.327 dirhams, and with transactions that exceeded 128 million shares.
Abu Dhabi Securities
On the Abu Dhabi Stock Exchange, the general index ended the trading session yesterday, increasing by 0.61% at 4413 points, and trading at a value of 454 million dirhams.
The share of «Aldar Real Estate Company» closed up by 1.09% at 1.85 dirhams, with trades amounting to about 50 million shares, while the share of «Ishraq Investment» fell by 3.3% at 0.42 dirhams, and trades exceeded 26 million shares.
In turn, the share of "ADNOC Distribution Company" decreased by 2.2% at 3.11 dirhams, with transactions exceeding 14 million shares, while the share of Abu Dhabi Commercial Bank increased by 1.2% at 5.16 dirhams.
Positive performance
In addition, the financial analyst, Muhammad Ali Yassin, said that the performance of the markets yesterday was positive, especially the Dubai Financial Market, with the support of investor confidence, and an improvement in the Emirates NBD share price, being one of the companies expected to attract large liquidity by the end This month, thanks to an increase in its weight on the MSCI Index, as well as a noticeable improvement in the share prices of other companies, such as Aramex, Dubai Investments, and Dubai Islamic.
Yassin explained that the results of companies that announced declines are no longer as influential as before, pointing out that the focus is now on blue-chip stocks and companies that are able to overcome the effects of the Corona crisis.
He added that most economic and business sectors are on the way to recovery, which heralds price hikes in the financial markets, attracting more liquidity and foreign investments, noting that news of mergers of companies in Abu Dhabi and the listing of investment fund units supports the positivity of the markets and motivates investors to re-enter.
Expected liquidity
In the same context, the expert in financial markets, Dean Kanaan, said that the financial results of real estate companies, and other affected sectors, were within expectations, and pre-deducted from the declines of the months that accompanied the Corona crisis. Therefore, they were actually taken into account, which means Yesterday's positive market performance is setting up more gains during the remaining months of the year.
He continued: «The current prices are very low, therefore, and with the re-evaluation of the weights of some stocks, and raising them on international indicators, it is expected that the coming period will witness strong domestic and foreign liquidity, moving the market, and compensating for the losses of the past period.
He added, "It can be said that the recovery period has begun, especially with the continued expansion of business and economic opening."
List of units of «Chimera S&P UAE» in «Abu Dhabi Securities»
The Abu Dhabi Securities Exchange announced the start of listing the units of the "Chimera Standard & Poor's Emirates Sharia Trader Fund" in the market, as of Monday, based on the instructions for listing securities in the market, and after the approval of the Securities and Commodities Authority.
The Abu Dhabi-based Chimera Capital company, which is specialized in establishing and managing investment funds, which is affiliated with Chimera Investment Company, announced last July the launch of the ETF.
The sub-fund was launched to simulate an indices compliant with Islamic law, in cooperation with the "S&P Down Jones" Foundation, under the umbrella of Chimera's Basic Fund, which is the first fund of its kind to obtain approval from the Emirates Securities and Commodities Authority.
Abu Dhabi - WAM