Dividends spur local markets

All the major Gulf bourses ended the week higher, reflecting improvements in local dividend payments against a backdrop of easing global pressures.

Better than expected business sentiment data from Germany - the powerhouse of Europe - boosted equity markets around the world and countered weak euro-zone purchasing managers' data released earlier.

"It is a case of a better global backdrop and specific triggers in the region. Europe in terms of its debt situation has calmed down a bit," said Saleem Khokhar, the head of equities at National Bank of Abu Dhabi. "Locally markets have been stalling for a little bit. But results in the fourth quarter were generally good."

Oil edged higher again, with Brent crude jumping US$1.13 to $123.80 a barrel as continuing tensions between Europe and Iran raised concerns over supply.

The Abu Dhabi Securities Exchange General Index closed 0.17 per cent higher to 2,539.20.

Leading the bourse was Fujairah Cement Industry, which rose 9.8 per cent. Eshraq Properties gained 9.09 per cent, while Sudan Telecommunications was up 8.18 per cent.

RAK Properties, which yesterday announced its net profits fell 72 per cent, maintained its price at 0.38 fils a share.

The Dubai Financial Market General Index gained 1.45 per cent to close at 1,632.22.

In Kuwait shares were flat, ending the day down 0.05 per cent to 6,091.80. The Saudi Tadawul All-Share Index closed 0.93 per cent higher at 7,031.26.

"The surprise for the UAE has been in the sizeable dividend payments recently compared to the zeros that were coming out before," Mr Khokhar said.

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