The UAE's property stocks rose this morning leading both indexes higher, with traders seeing a brighter outlook for the sector as the Cityscape Abu Dhabi conference comes to a close.
The Dubai Financial Market rose 0.73 per cent to 1,666.62, while Abu Dhabi's index saw a more sedate increase of 0.2 per cent to 2,709.07.
Majed Azzam, a property analyst at Alembic HC Securites, said that optimism was returning over prospects for the sector, particularly in Abu Dhabi.
"We're seeing a turnaround in earnings this year as they deliver a lot of properties.
"Real estate names have lagged other sectors, and they're playing catch-up right now. We're seeing a lot of liquidity moving from Egypt into the UAE."
Drake & Scull International, increased 0.93 per cent to Dh1.09 a share. The contracting giant was one of the most traded stocks in the early session
Emaar Properties, the developer of the Burj Khalifa, rose 0.29 per cent to Dh3.42 a share, while in Abu Dhabi, Sorouh Real Estate rose 1.33 per cent to Dh1.52 a share. Aldar Properties was one of the few stocks to buck the trend, falling 1.79 per cent to Dh1.65 per share.
Fresh interest in property stocks will come as welcome news for Eshraq Properties, which plans to raise Dh825 million by listing on the Abu Dhabi Securities Exchange on May 1.
Elsewhere on the ADX, First Gulf Bank rose 2.27 per cent to Dh18 a share. The bank is due to report first quarter earnings tomorrow.
Asian markets rallied in the early hours, with the Nikkei 225 rising 1.76 per cent to 9,606.82 and the Hang Seng Index up 1.04 per cent to 23,765.36. Meanwhile, Brent crude futures rose 79 cents to $122.36 a barrel.
