Dubai stock market resumes activity after Saudi speculation

After a quiet week there were rumours people were closing positions and moving money to Saudi stocks ahead of opening to foreign investors.

Construction and property stocks led the gains on the Dubai Financial Market. Sarah Dea / The National

Investors once again turned their attention to Dubai stocks after a quiet week, following rumours that they were deploying funds to the Saudi market amid preparations by the kingdom to open up the exchange to foreign investors.

“There was speculation in the markets here that people had closed their positions and moved their money towards Saudi stocks and that dampened activity in the market last week,” said Khaldoun Jaradat, a stockbroker at Brokerage House Securities in Dubai.

“But the market was good today and the activity has shown that the liquidity is still very much here.”

The Dubai Financial Market General Index rose 1.6 per cent on Monday to close at 4,819.86 points. Construction and property stocks led the gains on the broader market.

Arabtec Holding, whose former chief executive Hasan Ismaik has been cutting his shareholding in the company, rose 3.8 per cent to close at Dh4.28 a share.

Volumes on the shares of the Dubai contracting firm stood at more than 52.2 million and were valued at Dh221.3m.

“Arabtec has become a speculative stock,” Mr Jaradat said. “When the market moves, investors rush to buy Arabtec because the volume and arbitrage opportunities on it are so high.”

The Abu Dhabi Securities Exchange General Index was little changed, closing up 1.1 per cent at 4,997.59 points.

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