Dubai shares advanced broadly on Thursday, led by gains in Dubai Parks and Resorts, which rose more than 4 per cent and hit a high for the year on an optimistic outlook for the UAE’s tourism sector.
The DFM general index advanced 1.18 per cent, to close at 3,472.38, with gaining stocks outnumbering decliners by 24 to 5.
Trading in Dubai Parks accounted for nearly a quarter of the traded volume of more 171 million shares, ending up 7 fils at Dh1.73 a share, having gained about 19 per cent since its low this spring.
Other active shares included Arabtec, which gained almost 3.5 per cent to Dh1.49 and accounted for more than 20 per cent of the session’s volume.
There was no company news giving momentum but the broad sentiment in the region was helped by steady oil prices, with North Sea Brent crude futures mostly holding on to the bounce earlier in the week, dipping 0.24 to US$42.86 a barrel by the end of trading in Dubai.
Dubai Parks has three new operations due to open this year, including its unique Bollywood park, and another in 2019, and is poised to take advantage of rising footfall from increasing tourism from India and other Asian countries, according to Mohamed Zein of Renaissance Capital, who nevertheless said he sees its shares as already pricing this in.
Wednesday’s favourable IMF report on Saudi Arabia’s efforts to control its deficit after a ballooning shortfall last year helped the Tadawul all share index to close up 8.89 points at 6,246.45.
The Abu Dhabi all share index posted modest gains, with the ADX up 16.94 at 4,526.56, primarily led by the banking sector.
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