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Banks, Property Stocks Lift UAE Bourses

The growth signs in Capital’s economy helped boost investors confidence in the stock markets. Abu Dhabi will grow by about four per cent in 2010, compared with three per cent this year, Mohammed Omar Abdullah, the undersecretary of the emirate’s Economic Development Department, 
said on Sunday.

Emirates NBD jumped by 4 per cent to Dh4.40 and Shuaa Capital rose by 2.7 per cent to Dh1.88. Property stocks also posted gains, with Emaar Properties and Deyaar Development advancing 1.5 to Dh 4.21 and 1.4 per cent to Dh0.74 respectively. Arkan Building Materials added 5.2 per cent, the biggest increase since October 18, to Dh3.23 at Abu Dhabi market.

Both the share markets recouped some of the last week’s losses in early trading as Dubai recorded an intra-day high of 3.04 per cent to 2,161.36 points and neighbouring emirate rose by 1.23 per cent to 2,956.06 points.

Finally the Dubai Financial Market General Index finished 1.2 per cent up and closed at 2,123.26 points, the highest close since November 4 while Abu Dhabi’s benchmark index gained 0.7 per cent to 2,942 points, the most since November 2.

“There are no real indicators to explain the upward trend, although the positive US close last Friday provides some positive sentiment,” said Ayman El Saheb, director of operations at Darahem Financial Brokerage.

“We expect mostly sideways trading for the remainder of the week, as we really need a catalyst to start a rally,” El Saheb said. US stocks halted a two-week retreat after worker productivity, manufacturing and home sales beat economists’ projections and Warren Buffett’s Berkshire Hathaway Inc. made its biggest purchase by buying Burlington Northern Santa Fe Corp. More than 80 per cent of S&P 500 companies that have reported third-quarter results beat analysts’ predictions.

“Our markets are doing better today, mainly due to the good performance of the international markets on Friday,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage in Abu Dhabi.

The MSCI Emerging Markets Index rose on November 6, climbing for a third day. Crude oil has gained 74 per cent this year, closing at $77.43 a barrel last week, a “good level for the region,” Jayabhanu said. 
 — abdulbasit@khaleejtimes.com