Property provides momentum in Dubai

Gains across property stocks led the Dubai Financial Market to rise the most in a week.

Emaar gained 1.7 per cent to Dh3.03. Paulo Vecina / The National
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Gains across property stocks led the Dubai Financial Market to rise the most in a week as traders look towards second-quarter earnings for direction.

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Bellwether stock Emaar Properties was the among the most heavily traded companies, even though it is expected to write off a substantial amount in its stake in Dubai Bank, now owned by the Government. Analysts said any negative sentiment from the move had already been priced in. Shares in the company gained 1.7 per cent to Dh3.03.

Market commentators have largely agreed that the Dubai property market is in a better position than Abu Dhabi's because of the readiness of companies to hand over commercial and residential buildings at a faster rate.

"We're seeing some price stabilisation [in Dubai] which is not the case in Abu Dhabi," said Jad Abbas, a property analyst at EFG-Hermes.

"Hence some of the developers will benefit, especially those with large unsold inventories," Mr Abbas said, citing Emaar and Union Properties in particular.

Shares in Union Properties gained 0.5 per cent to 40 fils.

The Dubai Financial Market General Index rose 1.4 per cent to 1,553.56 points and the Abu Dhabi Securities Exchange General Index closed flat at 2,714.76 points.

Tamweel, the Islamic home-financing company, climbed 7.2 per cent to 91 fils after it announced the launch of two products.

Banking stocks also advanced on both markets, even as analysts at Credit Suisse cut their price targets on some lenders. Dubai Islamic Bank, the majority owner of Tamweel, added 1.5 per cent to Dh2.05.