Dubai stock market surges to five-year high

Retail investors target mid- to small-cap companies ahead of fourth-quarter earnings
Dubai stock market surges to five-year high
By Reuters
Thu 23 Jan 2014 12:15 PM

Dubai's bourse surges to a new five-year high as retail investors target mid- to small-cap companies ahead of fourth-quarter earnings, Reuters reported.

The index jumps 2.4 percent to 3,777 points, its highest level since October 2008.

It nears the 50 percent retracement of its drop from a January 2008 peak, which lies at 3,807 points and may provide resistance.

"Institutional money is either already in the market or waiting on the sidelines until there is something clear to bet on - this volatility is basically retail-driven," says Amer Khan, fund manager, Shuaa Asset Management.

Small- and mid-cap stocks dominated trade. Deyaar Development surges 9.4 recent, Islamic Arab Insurance is up 5 percent and contractor Arabtec climbs 4 percent.

"I wouldn't say we're setting ourselves up for a major correction, but if small stocks continue to move up at the current pace, valuations will have to come off," Khan adds.

Abu Dhabi's Aldar Properties gains 4.3 percent, leading trade on the UAE capital's index. The measure advances 0.5 percent to 4,606 points, also reaching a fresh five-year high.

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