Dubai rises above chart barrier in otherwise sluggish region

Surge in Damac Properties continues

Shares in Dubai are trading at their highest level since April. Ali Haider / EPA

Dubai's stock index rose above technical resistance in early trade on Monday while the rest of the region's bourses remained mostly sluggish.

The Dubai index gained 0.4 per cent in modest trading volume to 3,586 points, eclipsing its April peak of 3,573 points. The next, strong resistance is at 3,737-9 points, the January and February peaks.

Islamic Arab Insurance climbed 3.8 per cent in unusually heavy trade - it was the market's most active stock, and three of the 10 most active stocks were insurers. Damac Properties, which has been surging in the past week, climbed a further 3.0 percent.

Saudi Arabia's index slipped 0.2 per cent in the first 45 minutes, however, as Banque Saudi Fransi, which had added 1.4 percent on Sunday, tumbled 3.7 percent as it went ex-dividend.

Petrochemical maker Yansab sank 3.3 percent after it reported a 54 per cent year-on-year plunge in second-quarter net profit, citing a temporary shutdown of some facilities for maintenance and higher feedstock prices, despite an increase in some sales prices.

Chemanol rose 2.5 percent after saying it had received $10 million from a bank guarantee after one of its marketers failed to meet contract obligations. The marketer intends to seek arbitration, Chemanol said.

*Reuters