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By Sunil Kumar Singh
April 3, 2016 | 12:15 | Dubai
Investor sentiment seems to be slowly tiptoeing back into the local equity markets last month following global cues, especially after dovish statement by Federal Reserve Chair Janet Yellen on raising the interest rates. “March has overall been a positive month for local equity markets, and a far stretch away from the extensive selling that occurred at the turn of the year. Aside from pushed back US interest rate expectations, the major reason why local equity markets have turned the corner is because of the improved price of oil. We personally saw the weekly close above $35 late in February for WTI Oil as a critical signal that not only has the price of oil likely bottomed out, but that further gains were likely ahead and the commodity managed to make its way to $42 before the month of March reached a conclusion,” said Jameel Ahmad, Chief Market Analyst at FXTM, an international forex broker.
Year-to-date (YTD) Dubai Financial Market (DFM) is up more than 5% while Abu Dhabi Securities Exchange (ADX) up 1.3%. Out of 59 stocks listed on DFM, there were many stocks that rose more than 10%. These include 33.3% jump in Commercial Bank of Dubai (CBD) that rose from AED 4.6 to AED 6.2 last month. Other stocks that rose more than 10% include GFH that rose 21.7%, according to DFM’s monthly trading bulletin. Unikai Foods (10.1%), Dubai Investment (11.9%), Shuaa Capital (23.1%), Takaful House (14.5%), National General Insurance (15.2%), Oman Insurance (18%), Islamic Arab Insurance (18.7%), Arabtec (13.8%) and Union Properties (13.5%) whose prices soared more than 10%.