UAE and other Gulf stocks opened the day on a higher note riding on optimism created by the US recording a surge in employment data for March. The numbers suggest that US business activity is coming back thanks to stimulus packages and a robust COVID-19 vaccination campaign.
The investors are upbeat as any turnaround in the world’s biggest economy will have spillover impacts, propelling global stock markets upward on Monday.
Soaring on divestiture
Abu Dhabi Securities Exchange soared 1.1 per cent at 6,016 points in yet another stellar performance on its seventh day of consecutive gains. The index advance was mainly led by International Holding, which gained 11.3 per cent to Dh73.9 after announcing its plan to divest 100 per cent shareholding in Trust International Group for a sale consideration of Dh350 million.
Monday’s rise was the holding firm’s tenth in a row, helping the stock accumulate a massive 75 per cent gain for the year. The market also received some support from Abu Dhabi Islamic Bank, Dana Gas and ADNOC Distribution, while Waha Capital, RAK Properties and Abu Dhabi Shipbuilding weighed on trade volumes.
Gulf Pharmaceutical Industries also edged back that followed its deal to manufacture COVID-19 vaccine in the UAE.
Claws back losses
Dubai Financial Market eked out 0.3 per cent at 2,557 points with gains coming across sectors, but industrial and real estate stocks outperformed. Emaar Properties, Emaar Development and Union Properties moved up, with Dubai Investment, Gulf Navigation and Tabreed joining the rally, which helped the index recoup its losses in the last session when it dropped by the same percentage.
Oman’s 30-company index and Bahrain shares also made gains, pushed higher by their key lenders who benefited from the bullish trend in the wider region and beyond. But Qatar Exchange lagged, as it came under selling pressure from banking and industrial socks. So did the Kuwait premier index as its financial stocks headed lower.