Dubai shares rallied on Sunday as margin calls tapered off and institutional investors stopped selling, while renewed speculation of a merger between the UAE’s two stock exchanges boosted buying interest.
“It started off relatively firm,” said Julian Bruce, the head of institutional trading at EFG Hermes in Dubai. “I think locals have deleveraged and western institutions are sitting on their hands, so there was no selling pressure.”
Towards the end of the session, speculation resurfaced that the merger between the Abu Dhabi Securities Exchange and Dubai Financial Market was back on again, Mr Bruce added.
Sultan Al Mansouri, the Minister of Economy and chairman of the Securities and Commodities Authority, invited speculation that talks over a potential tie-up of the bourses was still possible when he told the Federal National Council last week “if there would be one market or two”.
Abdullah Al Turifi, the chief executive of the SCA, weighed in by saying it was up to the stock exchanges to decide.
“They each have their own board, with their own interest and strategies, and it’s up to them to decide,” Mr Turifi said on the sidelines of the same FNC session.
The Dubai Financial Market General Index rose 2.7 per cent to 3,774.86 points.
Trading in Abu Dhabi was lacklustre. The ADX index was up 0.03 per cent at 4,480.06.
halsayegh@thenational.ae
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