Weekly market roundup: Markets continue to rally as Arabtec rebound finally meets resistance
The Dubai Financial Market (DFM) index has enjoyed another bullish week; with a 4 per cent increase it has extended a strong surge through July.
Dominated once again by the ongoing turbulence within the real estate sector, growth has largely been prompted by a rapid rebound by construction giants Arabtec who opened the week with a near-maximum 14.77 per cent gain.
Buoyed by the still wounded share price of Arabtec (3.57DHS) and Union Properties (1.84DHS), investors largely held short positions, and this surge was overwhelmingly reflected on the DFM’s general index.
Nonetheless, surely but slowly, market resistance played its part and so Wednesday saw Arabtec, and indeed the entire market, endure its first slide in July, albeit by 2.13 per cent.
Elsewhere, only the banking sector saw somewhat mixed market reactions as four of the eight listed banks recorded minimal losses.
Worth noting too is that before closing on Thursday, news had broken out that plans to merge the DFM and the Abu Dhabi Securities Exchange (ADX) had been sidelined. It is unclear whether such move has been scrapped entirely or just shelved for a later date, however if given go-ahead it will represent one of the most significant changes in the countries financial history
Top gainers (%)
Gulf General Investments Company (Investments and Fin. Services) 23.76
Arabtec (RealEst. and construction) 19.32
National Cement Company (Industrials) 15.00
Gulf Mineral Water and Processing Ind. (Consumer staples) 14.88
Gulf Finance House (Banks) 14.16
National Central Cooling (Services) 12.66
Biggest losers (%)
National Industries Group Holding (Industrials) 18.18
Deepa Limited (NASDAQ Dubai) 7.69
Ajman Bank (Banks) 6.10
Al Salam Bank Bahrain (Banks) 1.85