Dubai’s main index (DFM) surged 3.0 per cent on Wednesday despite some investors were withdrawing from the market for year-end holidays.
Property stocks again dominated trading, with Deyaar gaining 6.4 per cent and Emaar Properties up 2.9 per cent.
The Abu Dhabi market rose 1.4 per cent, also led by property stocks; Eshraq Properties, the most heavily traded company, rocketed its 15 per cent daily limit.
Gulf stock markets resumed rising on Wednesday ahead of the release of Saudi Arabia’s 2015 state budget, which is expected to be announced on Thursday and show the government keeping spending at high levels despite the plunge of oil prices.
The Saudi finance minister ruled out major spending cuts, and the country’s Al-Madina newspaper, quoting unnamed sources, reported that the 2015 budget would actually contain a marginal rise in spending, with the government using its huge fiscal reserves to cover a deficit.
So stock market sentiment has improved considerably in recent days, also helped by the at least temporary stabilisation of the Brent crude oil price above $60 a barrel.
As the panic has eased, attention has returned to valuations, which look much more attractive in the wake of the markets’ plunge and are now close to or in line with those in other emerging markets, fund managers say.
“The recent market correction brought down valuations of a number of well-managed companies to attractive levels, especially considering underlying earnings growth,” Sachin Mohindra, portfolio manager at Abu Dhabi’s Invest AD, said in a note. More >>
Property stocks again dominated trading, with Deyaar gaining 6.4 per cent and Emaar Properties up 2.9 per cent.
The Abu Dhabi market rose 1.4 per cent, also led by property stocks; Eshraq Properties, the most heavily traded company, rocketed its 15 per cent daily limit.
Gulf stock markets resumed rising on Wednesday ahead of the release of Saudi Arabia’s 2015 state budget, which is expected to be announced on Thursday and show the government keeping spending at high levels despite the plunge of oil prices.
The Saudi finance minister ruled out major spending cuts, and the country’s Al-Madina newspaper, quoting unnamed sources, reported that the 2015 budget would actually contain a marginal rise in spending, with the government using its huge fiscal reserves to cover a deficit.
So stock market sentiment has improved considerably in recent days, also helped by the at least temporary stabilisation of the Brent crude oil price above $60 a barrel.
As the panic has eased, attention has returned to valuations, which look much more attractive in the wake of the markets’ plunge and are now close to or in line with those in other emerging markets, fund managers say.
“The recent market correction brought down valuations of a number of well-managed companies to attractive levels, especially considering underlying earnings growth,” Sachin Mohindra, portfolio manager at Abu Dhabi’s Invest AD, said in a note. More >>
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