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Dubai Shares Advance; Emaar Surges by 6.2pc

Dubai index mover Emaar Properties, the Middle East’s biggest property company, surged by 6.2 per cent to Dh4.30. Shuaa Capital, the UAE’s biggest investment bank, jumped by 7.7 per cent to Dh1.82.

The benchmark index of the Dubai Financial Market rose by 3 per cent to 2,137.80 to partially recover a 5 per cent decline on Tuesday. The main index of the Abu Dhabi Securities Exchange barely changed at 2,950.85.

“The roller coaster ride continued and investors will hope for a sideways move to the gate on Thursday, so they can get off for a rest. The volatility that Dubai has seen this week has been much higher than anywhere else this week, and the smart money is still battling with residual sellers and buying into weakness,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG Hermes.

Stock market operator Dubai Financial Market PJSC, the only listed bourse in the Gulf, gained 5.7 per cent to Dh2.23. Construction giant Arabtec Holding climbed by 3.9 per cent to Dh3.16.

With most third quarter earnings within expectations, and with stock specific news flow remaining thin, investors will continue to look for direction from global markets, said Wakeman. “In my view, it still looks like a strong end to the year, but with some rocky patches along the way such as this week. Sentiment remains bullish and that is key.”

Gains were reined in by a decline in oil prices which on Wednesday, dropped slightly to nearly $79 a barrel in Asia despite a surprise drop in US crude inventory. The contract gained $1.47 to settle at $79.60 on Tuesday.

Six member countries of the Gulf Cooperaton Council control about 40 per cent of world oil supply. Skittish investors also opted for caution ahead of the US Fed’s policy statement due out late Wednesday, keeping a keen eye on clues about when the central bank is expecting to tighten policy, and where the world’s largest economy is heading. The Fed is largely expected to keep its already low key interest rates steady.

Banks advanced in Abu Dhabi, led by Abu Dhabi Islamic Bank which climbed by 1.9 per cent to Dh3.20. National Bank of Abu Dhabi also rose by 1.9 per cent to Dh13.40. Cement manufacturer Gulf Cement Company, added 4.1 per cent to Dh2.07. The company said its net profit in the first three quarters dropped by 47 per cent from the year before to Dh107.37 million due to lower sales and and a decrease in unit average selling price.

rocel@khaleejtimes.com