Dubai’s stock index rallied to its highest level in over five years, driven by investor sentiment over expectations of massive first-quarter profits.
The DFM General Index (DFMGI), the world’s best performer this year so far, surged 1.3 percent to 4,438.35 to reach its highest level since September 2008. Qatar’s index rose 0.7 percent to close at its highest level in nearly three weeks.
Shuaa Capital PSC, an investment bank associated with the Emirate’s ruler, jumped 5.6 percent after it reported a profit in 2013, ending its loss-making streak since 2008. The growth was partly attributed to Dubai’s 4.9 percent economic growth rate last year.
The DFM Index has so far gained 32 percent in 2014, the highest such growth among over 90 indexes scrutinized by Bloomberg.
“We should expect some positive surprises in terms of earnings for first quarter and investors want to be positioned before that,” said Sebastien Henin, who heads the asset management unit at The National Investor. “The market is continuing positive momentum from the last week.”
Shuaa rose as much as 1.64 dirhams, before closing at 1.51 dirhams. The stock has gained its maximum allowed limit in the past three days as investors speculated that the company stands to cash in on the increasing number of initial public offerings in UAE. The government is also thought to be looking to sell its stake in the firm, which disclosed today that it clinched the deal to oversee Able Logistics Group’s IPO.
Logistics firm Aramex rose 3.8 percent to 3.25 dirhams, the highest level since April 2006. The company’s stock has so far advanced 46 percent over the past year.
To contact the reporter of this story; Samuel Rae at email@example.com