Bargain hunters push Dubai shares higher

Dubai shares advance to their highest level since January as oil traded above US$63 a barrel.

Dubai shares advanced to their highest level since January today as oil traded above US$63 a barrel and investors speculated that prices were cheap compared with other markets in the region. The Dubai Financial Market (DFM) gained 1.9 per cent to close at 1,763.29, while the Abu Dhabi Securities Exchange (ADX) advanced 1.3 per cent on high volumes to end the day at 2,643.63.
"Trading volumes were approximately 200 million a few sessions ago and now they are nearing 1 billion for the DFM," said Shiv Prakash, an equity investment analyst at MAC Capital Advisors. "Even Abu Dhabi is witnessing growing volumes, which gives a good indication that the markets will successfully break to the next resistance levels." Regional markets rose as oil extended gains, helped by a report that showed a rise in US consumer confidence. The US Conference Board's sentiment index surged to 54.9, which was more than forecast and the biggest increase since 2003, the research group based in New York said on Tuesday.
Crude oil for July delivery rose as much as 1.6 per cent to $63.45 a barrel in trading on the New York Mercantile Exchange. Emaar Properties, the UAE's largest developer, rose 5.5 per cent to Dh3.07, its highest level since December. Shuaa Capital climbed 14.3 per cent to Dh1.44 on the DFM, its highest in nearly five months. Shuaa, the largest investment bank in the UAE, said this week it was considering buying back all or some of the convertible bonds it issued to the Dubai Banking Group, or agreeing on a new conversion price.
On the ADX, the construction index rose 7.1 per cent, with shares of heavyweight property developers gaining ground. Aldar Properties, Abu Dhabi's largest developer, rose 2.1 per cent. the company earlier had its price estimate cut by 14 per cent to Dh8.60 at Citigroup. The gains in Abu Dhabi ended two days of declines. Saudi's Tadawul index advanced for the first time in four days, adding 0.3 per cent to 5789.43. Qatar's Doha Securities Market Index rose 1.8 per cent to 6,662.36 and Oman's exchange increased 0.2 per cent to 5,510.96. Kuwait's general index rose for a fifth day, adding 1 per cent.
Dubai's exchange has gained 12 per cent this quarter compared with a 23 per cent increase for the Tadawul and a 36 per cent rise for Qatar's benchmark index. * with agencies
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