Dubai's bourse broke above a major technical resistance and hit a fresh
54-month high on Sunday as mid-cap stocks surged.
The emirate's index jumped 2.7 percent to 2,430 points, its highest close
since November 2008. The market however, is still 61 percent below its
pre-crisis 2008 peak.
Gulf Navigation surged 14.9 percent, Dubai Financial Market, the Gulf's only
listed bourse, jumped 14.7 percent, both stocks at limit up - the maximum daily
Drake & Scull climbed 6.9 percent, extending 2023 gains to 54.8
Mid-caps are catching up to a rally in bluechips earlier this year as prices
picked up to reflect an improvement in fundamentals.
Dubai property prices partially recovered in recent months following a slump
in 2008 and banks reported improving earnings as provisions declined. UAE banks
were heavily exposed to government debt, which has largely been
Emirates NBD ended flat, holding on to 91.2 percent year-to-date gains.
"There's no worry of a potential bubble as the momentum is on solid footing,"
said Rami Sidani, Schroders Middle East head of investment. "The UAE market has
lagged since the post-financial crisis, while we've seen a rebound in emerging
market. The strong recovery in underlying economy wasn't reflected."
The Dow Jones index and S&P 500 index recovered their 2008 losses and
have recorded new all-time highs in recent sessions.
Abu Dhabi's benchmark climbed 0.8 percent to finish at 3,590 points, its
highest close since October 2008 but still nearly 50 percent below its peak of
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