Gulf stocks edge up; Dubai’s Damac extends gains after MSCI entry

Stock markets in the Gulf were mainly positive on Wednesday, with real estate stocks helping boost Dubai’s benchmark index while Etisalat supported Abu Dhabi’s rise.

Dubai’s main index rose 0.5 percent to close at 3,395 points, with the session’s total value remaining low at AED 214.5 million.

Damac Properties added another 2.5 percent to reach AED 2.87, extending gains from the previous session. The developer advanced yesterday after MSCI said it will include the firm in the United Arab Emirates Index on June 1.

“The company met the checklist for inclusion, when it opened foreign investment to the tune of 49 percent earlier this year. Currently, foreign investors own 35.2 percent of the stock,” Hettish Karmani, head of research at U-Capital, told Argaam.

Karmani expects Damac to witness passive inflows of $75-80 million, after the inclusion.

Meanwhile, other property and construction stocks also led up: Emaar closed higher by 1.4 percent at AED 7.25 and Arabtec Holding gained 0.7 percent at AED 0.725.

In Abu Dhabi, the general index added 0.3 percent to close at 4,594 points. Volumes were low at AED 138.3 million.

Etisalat was up 0.9 percent at AED 17.65, energy firm TAQA rose 3.5 percent to AED 0.6, and Eshraq Properties advanced 2.8 percent to AED 1.1.

Elsewhere in the region, Qatar’s QE index rose 0.2 percent. Qatar National Bank was up 1 percent at QAR 140.9.

Saudi Arabia’s Tadawul All Share Index was last trading slightly lower at 6,937 points.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com