Emaar takes DFM higher

Builder of Burj Khalifa reflected a return to property stocks as the company's shares rose for the first time in three days.

Emaar Properties rose 1.71 per cent to Dh3.56.

The market bellwether Emaar Properties lifted the Dubai Financial Market (DFM) General Index as the property sector made a comeback yesterday from Wednesday's lows.

Emaar, the builder of the world's tallest skyscraper rose 1.71 per cent to Dh3.56, the top property stock by volume traded on the DFM.

Roy Cherry, a property analyst at Shuaa Capital, said: "In my view Emaar is the only developer with a sustainable business model. Solid operating assets and relatively low debt makes it our only 'buy' in the real estate sphere."

Speculation that Aldar Properties is about to secure government funding also drove investor confidence as the Abu Dhabi builder climbed 2.59 per cent to Dh2.38 on the Abu Dhabi Securities Exchange (ADX) General Index.

Mohammed Khaled, a risk manager at Prime Emirates, said: "There is market chatter that Aldar is about to finalise its debt issues, [and] if Aldar goes up, others will follow."

Also on the ADX, Sorouh Real Estate rose 1.83 per cent to Dh1.67 and Arkan Building Materials advanced 0.58 per cent to Dh1.74.

The DFM General Index closed 1.24 per cent higher at 1,668.68, and the ADX General Index fell 0.16 per cent to 2,752.33.

Mr Khaled added that volumes were still "very weak" because most investors in the market were retail traders, or individual investors who bought or sold stocks regularly, rather than big institutional investors that made long-term investment in the market.

Elsewhere in the region: Oman's index crept up 0.42 per cent to 6,926.16; Qatar's closed 0.23 per cent higher at 9,019.26; Bahrain's advanced 0.45 per cent to 1,430.04; and Kuwait's retreated 0.34 per cent to 6,975.60. The Saudi Tadawul All-Share Index inched down 0.05 per cent to 6,696.55.