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Emaar Leads Rally on DFM

Analysts said rising oil prices and strong global markets have spurred buying across the Gulf Arab region, with Dubai making the steepest gain after falling 26 per cent between June 14 and July 13.

The Dubai Financial Market General Index advanced 5.2 per cent to 1,843.45 points, its biggest jump since February 23. In neighbouring Abu Dhabi, the benchmark index added 0.5 per cent to 2,724.61 points.

“Today’s rally was across the board, but property stocks recorded major gains mainly because of the reason that these stocks dropped sharply after the market rally came to an end in June, so they were due for a rise,” said Mohammed Galal, head of foreign institutional sales trading at Al Futtaim HC Securities. Emaar’s shares jumped by 9 per cent, while Union Properties climbed by 9.5 per cent and Arabtec added 8.2 per cent.

The UAE’s biggest Islamic lender Dubai Islamic Bank jumped to a five-week high of Dh2.64, up 6 per cent, in the first trading session after the company on Saturday reported a net profit that exceeded many analysts’ expectations. Emirates Integrated Telecommunications Company, the telecoms operator known as du, rose to Dh2.82, 4.8 per cent higher, after it reported a strong second-quarter profit.

“There is growing anticipation as companies report results that are better than expected,” said Mohammed Ali Yasin, managing director of securities at Dubai-based Shuaa Securities.

The Gulf region produces about 20 per cent of the world’s oil, and higher oil and a strong start to the trading week in Saudi Arabia also boosted markets, Yasin said. Saudi shares climbed the most in more than two months on Saturday.

Property stocks helped Abu Dhabi’s index to end higher for an eighth straight session, reaching a five-week high.

Aldar Properties and Sorouh Real Estate surged 8.4 and 8.2 per cent, respectively, while Emirates Telecommunications Corporation, or etisalat, fell by 1.9 per cent after an Indian court ruling banned major shareholders from selling their stakes in Indian telecoms firms for three years after launching.

Signs that the global economy may be improving, the rise in oil prices, and the stabilisation in domestic markets are helping the UAE economy emerge from a slump led by the collapse of real-estate and energy prices, Morgan Stanley said in late June. Oil prices increased by 7.1 per cent last week, crude’s biggest gain since May, to $68.05 a barrel. 


abdulbasit@khaleejtimes.com 
—With inputs from agencies