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This comes after the Israeli military announced the killing of Nasrallah, and said Israel is ready for wider escalation
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Property Shares Buoy UAE Stocks
DUBAI - UAE shares snapped three days of losses on Thursday, thanks largely to a rebound in property stocks. Dubai index heavyweight Emaar Properties surged in spite of a downgrading of its credit rating by Moody’s Investor Service.
Emaar Properties jumped by 7.27 per cent to Dh2.36, a day after Moody’s cut its credit ranking to Baa1 from A3, just two notches below “junk” status. Moody’s said its downgrade reflected ongoing uncertainty in the Dubai property market and its view that market conditions will remain depressed over a longer period.
“News of downgrades has been pretty much priced in by the markets. Investors are already looking beyond all the negative news and are buying into current valuations,” said Ali Khan, managing director of Arqaam Capital Ltd.
The Dubai Financial Market benchmark index edged up by 1.21 per cent to 1,583.19, with property issues gaining by 6.48 per cent.
The main index of the Abu Dhabi Securities Exchange ended 2.28 per cent higher at 2,497.03, lifted by news that the Abu Dhabi government sold $3-billion worth of bonds. Abu Dhabi had earlier registered to issue $10 billion worth of bonds.
Investors are hopeful that some proceeds from the $3 billion bond sale will go to companies that are strapped for cash, said Vyas Jayabhanu, an analyst at Al Dhafra Financial Brokerage.
Dubai-based Deyaar Development climbed by 5.55 per cent to Dh0.57, while its rival Union Properties, in which Deyaar is rumoured to be in merger talks, gained 4.22 per cent to close at Dh0.74.
Construction market leader Arabtec Holding added 4.21 per cent to Dh1.73. The company was awarded a Dh150 million contract by the Dubai Municipality.
“UAE markets are also responding to the strength in global markets, and investors are now eagerly awaiting the first-quarter results,” said Bruce Julian, institutional sales director at EFG-Hermes.
He said that investors are taking the view that all possible bad news had already been factored into the share prices, “and that we may see some surprises to the upside.”
Construction and engineering contractor Drake & Scull International, rose by 5.88 per cent to Dh0.72. Shuaa Capital rated the company a “buy” and targeted its share price at Dh0.89, citing the company’s focus on expanding its presence in the Middle East.
Bucking the positive trend, Dubai Islamic Bank fell by 9.68 per cent to Dh2.33 after the company paid a dividend on March 31.
Abu Dhabi property issues surged by 6.97 per cent, led by market leader Aldar Properties, which rose by 8 per cent to Dh30.2.
rocel@khaleejtimes.com
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