The Dubai Financial Market General Index (DFMGI) has continued its July surge in style this week, with the 5-day period recording a 7.2 per cent weekly gain ( July 13-17), the highest since March.
The week was particularly impressive for the real estate sector where three out of the five listed firms recorded double-digit growth. Elsewhere, only three companies listed across all sectors recorded a minimal loss.
The slow end to last week’s activity on the DFM continued into Sunday, which saw a sluggish rise of 0.1 per cent. However a mid-week surge, brought about by a bullish drive from Arabtec, resulted in Tuesday’s close at an impressive 3.36 per cent gain.
Arabtec ended the day with yet another near-perfect close at 13.55 per cent; in sharp contrast to their performance on Sunday and Monday where they gained a mere 1.89 per cent.
By Thursday morning, reports had broken out that market-dominator Arabtec were indeed on the brink of a further backing by government-owned Aabar Investments, who were considering a part-buyout of former CEO Hasan Ismaik’s 28.9 per cent shares.
Safe in the knowledge that this speculation would send Arabtec shares rocketing, thus single-handedly dragging the entire DFM with it as it has over recent weeks, regulators immediately stepped in and suspended Arabtec trading throughout Thursday. Instead, Emirates NBD stole Thursday’s limelight with a 5.88 per cent rise.
All eyes will now be on the weekend’s development of the Arabtec share saga.
Representatives of Aabar Investments and Hasan Ismaik have yet both declined to comment on the reports, however if given the go-ahead, next week may well round-up a hugely impressive Ramadan period at the DFM.
Top gainers (%)
Gulf Finance House (Banking) 18.11
Arabtec (Realest. and Construction) 17.86
Deyaar Properties (Realest. and Construction) 15.93
Arab Insurance Group (Insurance) 14.78
Union Properties (realest. and Construction) 14.74
Biggest Losers (%)
International Financial Advisors (Invest. and Fin. Services) 0.68
National Industries Group Holding (Industrials) 0.57
DP World (NASDAQ Dubai) 0.55