Khaleej Times - ADX gains, real estate banks weigh on DFM

The UAE and other Gulf markets began the week mixed but the week ahead looks positive as lockdown measures ease which will alleviate the demand pressure from oil.

Dubai index fell over one per cent, led by fall in shares of Emaar Properties, Emirates NBD, Dubai Islamic Bank, Amanat and Air Arabia. While the UAE capital bourse jumped 1.4 per cent on the back of surge in property and banking scrips.

RAK Properties was the top gainer of the day, rising nearly three per cent, followed by 2.4 per cent gains in Aldar Properties, 2.2 per cent rise in First Abu Dhabi Bank and 1.5 per cent gain in Abu Dhabi Commercial Bank.

"Dubai index suffered further losses as investor sentiments were hurt by a 28 per cent drop in full-year profit of Emirates Group. Nevertheless, ADX and Saudi Arabia's Tadawul indices started this week on a positive note, partly supported by the rise in oil prices on Friday," said Vijay Valecha, chief investment officer at Century Financial.

Saudi Arabia's Tadawul, the region's largest bourse, also gained 0.8 per cent on the back of recovery in oil prices.

Overall, the market capitalisation of the GCC increased by a combined $18.6 billion (Dh68.2 billion) on Sunday. While ADX and Tadawul saw its market cap rise by $1.7 billion and $17 billion respectively, DFM lost $0.6 Billion in market cap.

UAE and GCC markets suffered major losses last week and were not able to sustain the positive momentum seen in the end of April despite the continued rally in crude oil prices.

For the week ahead, Valecha said GCC markets are expected to trade side-ways with bias to the upside and will take cues for their global counterparts. "The relaxation of lockdown measures across many countries and the opening of economies will also help alleviate the demand pressure from oil and prevent major losses. Besides, soothing US-china trade tensions will help lift the investor sentiments and further support the indices," he added. -

Source: Khaleej Times