Shares in Dubai climbed to a level higher than they have been in over three months due to positive US employment and UK manufacturing figures and reports. This data boosted confidence in the growing worldwide economy. The rush to buy stock before Eid also helped.
Marked highs include Emaar Properties rising to its highest level since May and the Dubai Financial Market (DFM) surging 5.3 per cent. Emaar is the development firm behind Dubai’s famous tallest skyscraper in the world and the DFM is the sole Arab stock market in the Gulf offering shares for public purchase. The DFM General Index grew 2 per cent hitting 1,568.88 by the 2pm close time, a level not seen since the end of May. Another rise of 0.7 per cent occurred on the Bloomberg GCC 200 Index for Gulf shares.
The rally was not surprising after the positive moves previously seen in the US and the good signs witnessed during Ramadan, according to Saad al-Chalabi. With Abu Dhabi’s Al Ramz Securities, al-Chalabi is an institutional trader who noted that Emaar reached impressive levels of technical breakthrough recently that have lured investors and others back towards the markets.
Global stocks enjoyed a rally after August figures showed that US businesses had been hiring more than was projected, relieving worry that the global economic leader was sliding towards a recession again. Government reports recently showed that the private sector payroll figures in the US rose 67,000 in the month of August, well over the 40,000 median estimated by an economist survey conducted by Bloomberg.
Also, recent data released by the Engineering Employers Federation reported that factory production levels in the UK rose at a record-setting pace through Q3 due to a surge in export demands.
Rising for the fourth day, the MSCI World Index climbed 0.4 per cent. The Stoxx 600 Index in Europe rose 0.1 per cent, the fourth gain in only five days.
Ramadan, Islam’s month of holy fasting began in August. This week sees the celebrations of Eid mark the close of this holy month when Muslims worldwide practice a daily fast (sunrise to sunset) and slower business activity. Dubai saw around 204 million stocks traded in September alone, which is nearly four times 55 million, the daily average over one month.
The markets in Dubai will close for Eid on September 8, while the Kuwait stock exchange will close on September 9 until September 12.
Stocks of Emaar were advancing above 3.46 dirhams this week and that climb over the 200-day moving average indicated a rally had begun, according to al-Chalabi. This firm carries the most weight on the Dubai index and climbed 3.1 per cent to a level reaching 3.61 dirham. The DFM rose to 1.6 dirhams, a high not reached since June 21.
Bahrain’s Islamic lending firm Al-Salam Bank rose 1.4 per cent to 0.073 dinar, the largest jump since July 12. The bank was involved in the refinancing of a London commercial property near Canary Wharf, lending 38 million pounds ($59m) through a mezzanine facility that complied with Shariah law. Bahrain’s measure climbed 0.6 per cent.
The Tawawul All Share Index out of Saudi Arabia rose 0.6 per cent, while the QE Index in Qatar shrank 0.5 per cent after over a week of gains. ADX General Index in Abu Dhabi climbed 0.4 per cent, the MSM30 Index in Oman nudged ahead with gains lower than 0.1 per cent and the gauge in Kuwait rose 0.2 per cent.Paul Holdsworth, Staff Writer, Gulf Jobs Market News