[2008-05-02]  Confident bull run marks start of May at UAE bourses
The UAE stock markets bounced back on Thursday to start the month in confident fashion.

The Dubai Financial Market General Index climbed 1.36 per cent to 5,816 points as volumes nearly doubled those of the day before.

The increase in turnover was not so marked as penny stocks dominated trading.

Air Arabia and Gulf Navigation together accounted for half of the 370 million shares changing hands in Dubai, with the latter surging 4.37 per cent to Dh1.67, while the former was up 2.47 per cent to Dh2.07.

Gulf Navigation has been tipped to break Dh2 following its April 20 decision to open up its shares to foreign investors, a move which is awaiting the regulator's approval.

Air Arabia is also in demand after revealing its third hub, in Morocco, would be up and running by the end of the year.

"The markets started the month pretty well," said Sherif Abdul Khalek, Al Futtaim HC Securities dealing room manager.

The other high-traded stocks all made gains, with the DFM Company and Deyaar adding 2.17 and 3.11 per cent respectively.

The latter on Thursday issued a statement from its chairman saying Deyaar's profitability would not be affected by alleged financial irregularities that are continuing to be investigated by the Dubai Police.

Arabtec was one of only four Dubai stocks to decline, falling 0.64 per cent to Dh15.40. Alok Nawani, Emaar Financial Services equity investment analyst, says investors have nothing to worry about following Arabtec's recent rapid ascent.

"This is just some people wanting to take some money off the table and they will probably be buying back Arabtec in no time," said Nawani. "It's unlikely the market will correct, but if it does, Arabtec should excape any downturn."

Meanwhile, the ADSM was also a happy hunting ground for investors, as the index climbed 0.72 per cent to 5,025 points, in part thanks to its three most active stocks all advancing. Of these, Aldar Properties fared the best, adding 1.71 per cent, while Aabar continued its resurgence, to rise 0.6 per cent and Dana Gas increased by 0.99 per cent. Taqa surprised many analysts by not repeating Wednesday's gains. Emaar's Nawani was one of them, but he stressed the company remained an excellent long-term investment.

On the Dubai International Finance Exchange, Depa extended its gains for a second day, rising 2.14 per cent to $1.43, although it remains 7.7 per cent down on its April 23 debut price of $1.55.



Source: Copyright © 2008. Arab Media Group.