Dubai shares hit three month high as Damac run continues

Shares in the UAE hit multi-month highs at Monday’s close, with Damac Properties and First Abu Dhabi Bank acting as catalysts.

Qatari stocks rebounded after Sunday’s sell-off, while Saudi stocks led losses across the Arabian Gulf.

The Dubai Financial Market General Index rose above technical resistance in early trade, eventually closing up 0.8 per cent at 3,602.46.

It was the index’s highest close since its April peak of 3,573 points. The next strong resistance is at 3,737-9 points, the January and February peaks.

Damac Properties once again led Dubai stocks, rising 3.8 per cent to Dh4.43, taking gains since the start of last week to more than 33 per cent.

Sanyalak Manibhandu, head of research at NBAD Securities, said there was speculation that the stock was rising as a “Trump trade in the Middle East,” given the company’s close ties to US president Donald Trump.

“Others are suggesting a special distribution, which I do not subscribe to. Lastly, there is the liquidity provision for the broker,” he said.

Islamic Arab Insurance climbed 3.4 per cent in unusually heavy trade – it was the market's most active stock.

Shares in Abu Dhabi led gains across the region, closing up 1.1 per cent at 4,575.61, their highest level since late May.

First Abu Dhabi Bank, the heaviest weighted stock on the capital’s index, closed up 2.8 per cent at Dh10.85, its highest level in a month.

Saudi Arabia's index closed TKTK per cent lower. Banque Saudi Fransi, which had added 1.4 per cent on Sunday, tumbled TKTK per cent as it went ex-dividend.

Petrochemical maker Yansab sank as much as 3.3 per cent, before closing down TKK per cent. The company reported a 54 per cent year-on-year plunge in second-quarter net profit on Monday, citing a temporary shutdown of some facilities for maintenance and higher feedstock prices, despite an increase in some sales prices.

Chemanol rose TKTKT per cent after saying it had received US$10 million from a bank guarantee after one of its marketers failed to meet contract obligations. The marketer intends to seek arbitration, Chemanol said.

The Qatar Exchange ended the day up 1 per cent, regaining ground after falling 1.3 per cent on Sunday.