UAE Share Markets Surge 
on Positive Global Cues

DUBAI - Index heavyweight Emaar Properties and construction firm Arabtec Holding surged on Sunday to pull up the Dubai bourse as investors welcomed strong overseas market rallies. The Dubai Financial Market benchmark index edged up 2.88 per cent to 1,474.40 on broad-based buying after last week’s losses. The Abu Dhabi Securities Exchange main index inched up 0.34 per cent to 2,181.81.



By Rocel Felix

Published: Tue 10 Feb 2009, 12:30 AM

Last updated: Thu 2 Apr 2015, 3:54 AM

Markets across the globe posted significant rallies during the weekend as investors shrugged off the worst job loss report in the US and focused on rising hopes the stimulus package will finally push through. Gulf markets were also boosted by a strong finish Saturday by Saudi stocks.

“It was a good start for the week, volumes are better and we’re seeing some foreign buying again,” said Sherif Abdul Khalek of Beltone Financial Securities.

Property stocks in Dubai, recovering from last week’s pummelling, rose more than 6 per cent led by Emaar Properties which climbed 6.62 per cent to Dh1.93 per cent.

Deyaar Development ended 2.04 per cent higher at Dh0.50. Union Properties added 3.57 per cent to Dh0.58.

The country’s largest construction company, Arabtec Holding outperformed the market, its shares jumped 14.47 per cent to Dh0.87.

“Buyers are returning to Arabtec hoping that too much negative news is priced in, and downside limited,” said Matthew Wakeman, managing director of cash and equity linked trading at EFG-Hermes.

Arabtec is holding a board meeting today to approve the release of earnings.

“Hopefully these will hit the tape after the meeting. All eyes will be on the guidance from the company on its order book status for the rest of the year,” said Wakeman.

Some investors see Arabtec benefitting from news that construction costs in Dubai dropped 71 per cent from their peak in August, said Khalek.

“Expectations are that Arabtec may post a positive surprise in its earnings.”

Banks in Dubai went up 2.12 per cent, paced by Emirates NBD which gained 4.71 per cent to Dh1.93.

The Dubai Islamic Bank edged up 3.59 per cent to Dh1.73.

Abu Dhabi-based Aldar Properties and Sorouh Real Estate continued to underperform their Dubai peers as investors digest their recent earnings.

Aldar gained 2.45 per cent to Dh2.09 while Sorouh added 1.44 per cent
 to Dh2.12.

Most banks in Abu Dhabi retreated on profit-taking after their strong rally last Thursday when the emirate’s government said it will inject Dh16 billion into five banks to boost confidence in the sector.

“The intervention is certainly welcomed and a positive development, but the amount is not that large enough to justify a sustained rally on banking shares,” said Ali Khan, managing director of Arqaam Capital.

First Gulf Bank dropped 6.43 per cent to Dh7.83, National Bank of Abu Dhabi lost 1.98 per cent to Dh7.81 while Abu Dhabi Commercial Bank edged down 0.65 per cent to Dh1.53.

Sharjah Islamic Bank fell 2.41 per cent to Dh0.81. The bank said on Sunday its net profit in 2008 dropped 23 per cent to Dh231.6 million. The bank did not disclose why earnings declined.

“It will take time before we see evidence that the cash injections into the banks have stimulated lending and liquidity. Investors are looking for the next story. This is no surprise as short term traders are dominating the market currently,” said Wakeman.

· rocel@khaleejtimes.com


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