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DFM rises to two-week high; Emaar properties advance

DUBAI — Emaar Properties on Tuesday reversed initial losses to finished higher, helping Dubai’s benchmark index edged up to a two-week high, but volumes remained thin.

Emaar climbed 1.5 per cent to Dh3.30. The developer is forecast to report a second-quarter profit of Dh968 million ($263.5 million), according to analysts polled by Reuters.

“There is still quite a while before UAE earnings come out — Emaar is expected to have a good quarter and so might see some buying ahead of its earnings announcement, but I don’t see it going much above Dh3.30,” said Mohamed Laboudi, Prime Emirates Relationship Manager.

Dubai property prices extended declines in June, hurt by oversupply and low demand, Deutsche Bank said in a research note in which it named Emaar as it top pick among UAE developers.

Arabtec rose 1.8 per cent and du advanced one per cent.

The DFMGI climbed 0.4 per cent to 1,508 points, its highest finish since June 28. Volumes increase slightly from Monday’s seven-month low, but trading remains lacklustre.

“Nobody has the bottle to invest in the market right now,” said Laboudi. “People are waiting for second-quarter earnings — that’s the only catalyst we have to hope for.”

Abu Dhabi’s benchmark index made its largest decline for two weeks, slipping 0.4 per cent to 2,518 points.

Only four stocks trade more than one million shares. Three ended flat — Sorouh Real Estate, Aabar Investments and Aldar Properties — while the other, Dana Gas, fell 1.4 per cent. “Without increased volumes, the markets aren’t moving anywhere,” added Laboudi. —