Emaar rating helps DFM gain

Morgan Stanley gave the company an 'overweight' rating.

Morgan Stanley's initiation of coverage on Emaar Properties with an "overweight" rating enabled the Dubai Financial Market (DFM) to close up yesterday. The DFM General Index gained 0.9 per cent to 1,512.90, shaking off some of the losses from earlier this week. Emaar led the risers, adding 1.2 per cent to Dh3.25. In a note to investors, Morgan Stanley said Emaar offered strong recurring revenue through malls and hotels in Dubai, and has exposure to non-UAE property markets.

Emirates NBD, the country's largest lender by assets, firmed 2.8 per cent to Dh2.50 as investors took a rosier view of the bank's earnings this week. Aramex and Dubai Islamic Bank added 1.1 and 1 per cent to Dh1.73 and Dh1.98, respectively. The market is also drawing strength from "global equities and an improving economic scenario", said Chahir Hosni, the equities sales manager at EFG-Hermes in Dubai.

The Abu Dhabi Securities Exchange General Index continued its sideways movement on low volumes, dropping 0.5 per cent to 2,547.33, with only 29.1 million shares traded. Adel Merheb, a technical analyst at Shuaa Capital, said the index "continues to flirt with the much-highlighted resistance at 2,570 and a decisive upside break is required before stretching for significant gains". Aldar Properties was among the major losers, dropping 1.6 per cent to Dh2.45. The telecommunications operator Etisalat dropped 2.4 per cent to Dh10.15

Qatar rose the most in the region, by 1.1 per cent. Muscat was up 0.8 per cent, while Bahrain added 0.7 per cent. Kuwait's main measure retreated 0.2 per cent and Saudi shares declined 0.1 per cent. [e-mail]