Property stocks propel Dubai market

Markets Wrap: Stocks rose in Dubai yesterday as confidence in the property market continued to grow.

There are strong signs the property sector is reviving. Sarah Dea / The National
Powered by automated translation

Stocks rose in Dubai yesterday as confidence in the property market continued to grow.

The Dubai stock exchange rose 0.2 per cent to finish the day at 1,627.35. It has gained 3.6 per cent this week.

Shares in Emaar, the Burj Khalifa builder, rose for a second day after it agreed to a deal to build properties in Iraq. The stock gained 0.8 per cent to close the day at Dh2.86. The shares hit Dh3.7 in morning trading, the highest intraday level since December 2010.

"The market continues to be fuelled by optimism in the real estate sector in Dubai," said Rami Sidani, the head of Mena at Schroders. "There are strong signs of the sector reviving. Emaar has launched several projects and those have been very well received. There is very strong demand for the stock, which is pushing up its price."

Investors were also encouraged by the strong turnout at Cityscape Dubai.

"The exhibition was very busy," said Mr Sidani. "There was strong demand from investors."

Shares in the operator of the Dubai Financial Market, rose after the nation's regulator approved trading rules, leading to optimism that volumes and revenue would increase. The stock rose 1 per cent to finish the day at Dh2.

Stocks were also buoyed by better than expected jobs and services industry reports in the United States, and the decision by the European Central Bank (ECB) to keep interest rates on hold at a historic low of 0.75 per cent.

"The global backdrop is also supporting stabilisation, with the ECB jumping in to support Spain and Greece," Mr Sidani said.

Elsewhere in the region: Kuwait's bourse added 0.2 per cent to 5,995.28. Oman's MSM 30 Index rose 0.5 per cent to 5,646.36. Qatar's QE Index slipped 0.3 per cent to 8,478.35. Bahrain's index ended slightly higher, up 0.08 per cent at 1,077.74. The Saudi Tadawul All-Share Index was closed for the weekend.