Monday, 27 July 2020

Damac, Arabtec stock rallies keep #UAE markets buzzing | Markets – Gulf News

Damac, Arabtec stock rallies keep UAE markets buzzing | Markets – Gulf News:

Major UAE real estate sector stocks are on a tear with Arabtec rallying 14.85 per cent and Damac gaining 8.25 per cent for the day.

The wider DFM is in the black by 0.10 per cent, while ADX closed 1.06 per cent higher. The real estate sector has been outperforming the general indices since the lows in March. From the third week of March, DFM has rallied 20 per cent while the DFM Real Estate index is up a staggering 40 per cent. 

During the same period, Damac has rallied by an astounding 163 per cent and Arabtec leapt higher by 153 per cent.

There are company-specific and macro-level factors behind the stellar outperformance of real estate stocks. Recently Arabtec had a reshuffle of its top level management - Walled Al Muhairi, who happens to be deputy CEO of the Abu Dhabi sovereign wealth fund Mubadala, was appointed Arabtec chairman, and the hope is that he will speed up the restructuring process.

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