(MENAFN- Khaleej Times) Tue 2 Nov 2021, 8:29 PM
Last updated: Tue 2 Nov 2021, 10:41 PM
Dubai's stock market on Tuesday registered sharp gains, reaching its highest since June 2018, as the government announced plans to increase liquidity in the market by listing 10 state-backed companies on the exchange.
The Dubai Financial Market's General Index surged 113.77 points, or 3.94 per cent — hitting its highest since August 2018 on positive developments announced by the government to boost activity on the local bourse.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE, announced plans to list Dubai Water and Electricity Authority in coming months. This move boosted the market sentiments, which were already high due to a Dh2 billion market-maker fund to boost trading on stock market.
Analysts said the latest initiative is aimed at making Dubai a more competitive market against bigger bourses in the region that are seeing larger listings and strong liquidity.
“The Dubai stock market shot up as news emerged that the government intends to list 10 state companies on the exchange. The initiative could help the DFM attract liquidity and improve performance in the market as a whole. The market could thus witness the same dynamism that appeared in neighboring markets after a series of IPOs,” Wael Makarem, senior market strategist for Mena region at Exness, told Khaleej Times.
Lately, he said the DFM has suffered a couple of de-listing announcements that pressured the market.
Dubai Financial Market led the gainers list with 14.15 per cent growth in its value with more than 125 million shares exchanged hands. Amlak and Deyaar shares surged 10.45 per cent and 9.32 per cent, respectively.
Major gainers, loser
Among other gainers, Property giant Emaar, Shariah-compliant lender Dubai Islamic Bank and Dubai Investments also supported the benchmark index with 7.63 per cent, 2.92 per cent and 9.88 per cent increase in prices, respectively.
On the other hand, Damac Properties retreated 2.1 per cent, on course to end two sessions of gains.
In Abu Dhabi, the main index rose 0.66 per cent to 7,976.99 points, reaching a record high. The country's largest real estate company Aldar and lender First Abu Dhabi Bank led the rally as they rose 2.91 per cent and 1.43 per cent, respectively. Union Insurance shares dropped 9.86 per cent.
Regional markets up
In regional markets, Saudi Arabia's benchmark index TASI added 0.3 per cent, with Al Rajhi Bank rising 1.7 per cent and Dr Sulaiman Al Habib Medical Services climbing 1.4 per cent.
"The Saudi stock market opened on the positive side as oil prices continue strengthening and as investors start pricing in the governments' initiatives to spur investment and boost economic activity. The main index could return to its latest peak as oil prices are expected to continue rising,” Makarem said.
Outside the Gulf, Egypt's blue-chip index rose 0.9 per cent, with top lender Commercial International Bank closing 1.8 per cent higher.
“The Egyptian stock market continued its climb supported by the strong oil prices and the optimistic mood around the economic developments in the country. As a result, the main index could surpass this year's peak,” Makarem said.
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