Interpreting Middle East Economic News and Analyzing Market Trends

DFM hits 4-year high outperforming S&P 500 by more than double since the beginning of the year

 

The Dubai Financial Market (DFM) has been on a roll since the beginning of this year.  This week, the index hit a four-year high:

 

The Dubai Financial Market General Index gained 1.6 per cent to 2,108.63 points, the highest since November 2009. Abu Dhabi’s ADX General Index fell fell 0.3 per cent at 3,278.22 points.

Dubai economy is set to expand 4.6 per cent, on average, between 2012 and 2015, more than twice the average growth in the prior four years, government forecasts show.

“This is an extension of the early economic upswing,” Talal Touqan, head of research at Al Ramz Securities, said by e-mail. Stock values are being raised as “risk perception of Dubai improves,” he said. 

Dubai shares on Sunday climbed to the highest in more than three years on bets economic growth in the emirate will accelerate, pushing its credit risk lower.

Emaar climbed 1.8 per cent to Dh5.55, the highest close since March 14. Dubai Islamic Bank jumped 5.3 per cent to Dh2.79. Drake & Scull surged 7.7 per cent to 90.5 fils.

Saudi Arabia’s Tadawul All Share Index fell 0.1 per cent. Bahrain lost 0.2 per cent and Oman’s measure dropped 0.4 per cent. Kuwait jumped one per cent and Qatar’s QE Index gained 0.5 per cent. Egypt’s benchmark index rose 0.2 per cent.

Read original article from Khaleej Times.

 

Meanwhile, Dubai’s neighbors haven’t been so lucky.  Bahrain, Kuwait, Qatar and Saudi Arabia have all had mediocre performance in comparison.  Globally, the S&P 500 index has been attracting a lot of attention since breaking it’s all time record earlier this year.  However, over the past six months, the S&P 500 has risen 11% (which is remarkable), compared to DFM’s 30% over the same period (which is crazy!).