DFM investors pile into insurance stocks

Islamic Arab Insurance (Salama) shares were the main gainers on the Dubai Financial Market on Wednesday, as investors piled into insurance stocks.

Salama shares had their busiest day of trading since November, ending the day up 6.5 per cent at 56.9 fils.

Shares in Takaful Emarat Insurance meanwhile rose 5.5 per cent to an all-time high of Dh1.70.

“Liquidity’s returning to the market, and retail investors are coming back in and looking to make money,” said Khaldoun Jaradat, a trading manager at Brokerage House Securities in Dubai.

“Investors have been looking at some non-active shares – like those in the insurance sector – and are trying to inject some liquidity in to make some money on them.”

Increased trading volumes in Salama and Takaful Emarat comes after similar increases for Methaq Takaful Insurance, he noted, which has gained 19.7 per cent since the start of the month.

Elsewhere, Dubai Investments shares closed at their highest level since November, ahead of the stock’s ex-dividend date on Thursday.

The conglomerate’s shares rose by 5 per cent to Dh2.89, their highest level in more than five months.

The DFM General Index gained 1.4 per cent to 3,828.99 points, the highest level since the end of February.

Methaq Takaful Insurance was one of the best performing stocks in Abu Dhabi, climbing 5.3 per cent to 79 fils.

The Abu Dhabi Securities Exchange General Index rose 0.5 per cent to 4,591.27, with gains by Eshraq Properties and RAK Properties countered by falling banking stocks.


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