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DFM Hits Fresh 11-month High; ADX Ends Lower

DUBAI — The Dubai bourse maintained its rising trend, despite more than one per cent fall in the early hours, and made a fresh 11-month high on Monday helped by Emaar Properties.

Dubai heavyweight and property giant Emaar Properties finished 2.9 per cent up, leading the Dubai Financial Market General Index up by 16.90 points, or 0.7 per cent, to 2,342 points, the highest close since November 2008. The benchmark has gained over 43 per cent since mid-July.

“It’s getting to the stage now where stocks in Dubai have priced in the best that we can hope for from Q3 results and as such the question ‘so now what’ comes into play,” Matthew Wakeman, director of cash and equity linked trading at EFG-Hermes in Dubai, said.

“Blowout earnings will provide some juice to the upside on a stock specific basis but for the majority it’s developing into a buy the rumour sell the fact scenario in my view,” Wakeman said.

In Abu Dhabi, the ADX Index closed down 0.4 per cent to 3,218 points, just off a new 11-month high reached in the previous session. Abu Dhabi Commercial Bank takes the most points off the index, declining 3.4 per cent to Dh2.30.

At DFM, Arabtec Holding jumped by 1.7 per cent to Dh3.63 in the wake of Goldman Sachs improved outlook for the company. Goldman raised its price target on the Dubai-based contractor to Dh5.01 from Dh3.77 and said risks of further project cancellations at the firm seem to have subsided given an improving global and regional macro environment. “With the Governor of the city of St Petersburg in Russia having finally approved the construction of the much debated Okhta Center, we believe there is increased visibility on the likelihood of this project going through,” Goldman said on Monday.

Goldman noted that the contract, which represents 36 per cent of Arabtec’s existing order book, is worth Dh10 billion. Aldar Properties at ADX closed 0.64 per cent down to Dh6.39 despite positive outlook by brokerage Credit Suisse. Credit Suisse raised its price target on the stock of Abu Dhabi-based property major and said it was positive on the Abu Dhabi developer due to attractive valuation, potential upside from the company’s land bank and catalysts in the fourth quarter.

The brokerage, which expects Aldar to outperform its local and regional peers, raised its target one the stock to Dh8.47 from Dh5.

· abdulbasit@khaleejtimes.com

· With inputs from Reuters