Investors in Dubai’s equities might be feeling whiplash after the main index became the biggest gainer in back-to-back sessions, in response to shifting news on regional tensions and local stocks’ presence in global benchmarks.
The DFM General Index advanced 3.5% on Tuesday, gaining more than any other major market tracked by Bloomberg. The Tuesday revival was sparked by MSCI Inc’s retention of two
Dubai property companies in its main emerging-market stock gauges, preventing eventual fund outflows. Emaar Malls PJSC and Emaar Development PJSC jumped 14% and 8.1% respectively on Tuesday.
“There was the headline effect on the market; nobody knew exactly how things would turn out” with regional security tensions, Ali El Adou, the head
of asset management at Daman Investments in Dubai, said in a written response to questions. “But as nothing major came, it makes sense to see investors come back and buy shares that are trading at a very attractive valuation.”