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Wed 23 Sep 2009 10:24 AM

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DFM rises as investors remain bullish

UPDATE 2: Ongoing merger speculation and strong trading volumes lift market.


Dubai Financial Market

rose for a fourth straight session amid ongoing merger speculation and as investors remained bullish on the stock because trading volumes were better than expected during the holy month of Ramadan.

DFM

has risen more than 28 percent since its close on September 14, a day after a newspaper reported the exchange could merge with Dubai's other top exchange Nasdaq Dubai.

On Wednesday, the stock closed 10.9 percent higher, helping to lift Dubai's index 3.6 percent.

In addition to the merger talk, volumes in the past weeks have been better than expected, providing a boost to the stock.

"Volumes in the markets are helping investors to have a bullish view on the stock," says Ali Khan, managing director and head of brokerage at Arqaam Capital.

"There has been very little interruption in terms of volumes," he added.

Abu Dhabi Commercial Bank

closed 3.8 percent lower after it said it may have to take additional provisions to cover its exposure to two Saudi groups.

Invest Bank

posted the steepest decline, plunging 9 percent.

Other banks fared better and together with property stocks helped close the main index 1.4 percent higher at 3,144 points.

Dubai's main index closed 3.6 percent higher at 2,204 points, also led by property stocks. All stocks that exchanged hands ended in positive territory.

Doha Bank

was the strongest gainer in Qatar, closing 5.7 percent higher. The main index climbed 2.3 percent. (Reuters)

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