DFM General Index Jumps 1.80% Amid Higher Trading Volumes

The Dubai Financial Market General Index (DFMGI) closed 1.80% higher at 1,670.05 Tuesday amid higher trading volumes as European bourses recovered slightly.

The day before, investment bank EFG Hermes confirmed the DFM’s mid-term target at 2,000 points and said investors could accumulate positions at Monday’s level.

Arabtec Construction as the most liquid share advanced 6.18% to hit Dhs 3.61 ($0.98), followed by Islamic home financing firm Tamweel (up 12.28% at Dhs 1.28 or $0.35).

Shares of the DFM, the only Arab bourse listed to the public, gained 4.42% to reach Dhs 1.18 ($0.32), AMEinfo reported.

Earlier in the day, DFM announced that the number of new investors registered during the first quarter of 2012 has grown by 93.5% to 2613 investors compared to 1350 investors during the corresponding period of 2011. “Investors have shown mounting enthusiasm to obtain a DFM Investor Number (IN), amid re-ignited sentiment towards listed securities, which in turn led to an 87.7% jump in trading value during the first quarter to Dhs 0.47 billion ($0.13 billion) compared to Dhs 10.91 billion ($2.97 billion) in the same period of last year.

As for nationality groups, UAE investors shared the leading position with their foreign counterparts with 929 new investors for each nationality category, followed by Arab and GCC nationals with 623 and 132 new investors respectively,” the DFM statement said.

Logistics provider Aramex added 1.11% to close at Dhs1.83 ($0.50). Earlier in the day, Aramex announced net profits for the first quarter 2012 increased to Dhs 61 million ($16.61 million), up from Dhs 50 million ($13.61 million) in the corresponding period of 2011, representing an increase of 22%.

Nineteen shares advanced, 8 declined and two closed even. Some 285 million shares were traded, valued at Dhs 439 million ($119.54 million).