Abu Dhabi’s bourse crossed the 4,000 mark for the first time in five years on Monday, playing catch-up to gains on neighbouring Dubai’s market, which extended a rally driven by the recovery in the real estate sector.
Abu Dhabi’s index climbed 0.3 percent to 4,001 points, it’s highest close since September 2008.
The market is up 52.1 percent year-to-date, while Dubai’s index has rallied 91.1 percent in 2013.
“Abu Dhabi is just seeing a catch-up move, I don’t think it will trigger a major change in sentiment,” said Sebastien Henin, portfolio manager at The National Investor.
Dubai’s measure meanwhile rose 1.5 percent to finish at 3,100 points, a new five-year high.
Real estate stocks rallied, buoyed by a strong recovery in the property prices and rent and optimism over demand for new projects.
Emaar Properties and Deyaar Development jumped 3.4 and 5.3 percent respectively.
“Investors are more comfortable to invest in Dubai real estate, which reflects the economic recovery. It shows a vote of confidence, which is lacking in the Abu Dhabi real estate,” Henin said.-Reuters
