UAE shares rise led by Aldar and Union Properties

DUBAI — UAE shares advanced on speculation near-record oil prices will boost government spending and corporate profits.

By Bloomberg (UAE Stock Markets)

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Published: Mon 26 May 2008, 9:25 AM

Last updated: Sun 5 Apr 2015, 1:41 PM

Aldar Properties PJSC rose the most in more than a month after the company said it hired banks to help sell its first UAE dirham Islamic bond. Union Properties climbed to its highest in almost three years.

"There is improved investor sentiment as company earnings are expected to be strong throughout the year, which is not the case in many markets across the world,'' Mohamed Dwaikat, a senior broker at Abu Dhabi-based Al-Fajer Securities, said in a telephone interview from Abu Dhabi.

The Abu Dhabi Securities Exchange General Index rose 0.9 per cent to 5,005.29, gaining for a second day. The Dubai Financial Market General Index increased 0.1 per cent.

Aldar said last month first-quarter net income more than tripled, while Union Properties reported a profit increase for the period of 70 per cent. The economy of the U.A.E. will grow 7.2 per cent in 2008, according to the median estimate of seven economists polled by Bloomberg in December. The Gulf Arab states have announced more than $2 trillion of construction projects, Middle East Economic Digest, or MEED, reported in March.

Crude oil for July delivery rose $1.38, or 1.1 per cent, to settle at $132.19 a barrel on the New York Mercantile Exchange on May 23. Futures reached $135.09 on May 22, the highest since trading began in 1983. Prices have doubled over the past year.

Aldar increased 4.3 percent to Dh12.1, its biggest one-day gain since March 19. Abu Dhabi's biggest property developer hired a group of eight banks to help it sell its first Islamic bonds in U.A.E. dirham.

Union Properties added 1.8 per cent to Dh5.13, its highest close since July 2005. The Dubai-based real-estate developer that's building F1-themed parks is in discussions to buy between 40 and 60 million square feet of land in Dubai for new housing projects.

Saudi Arabia's Tadawul All Share Index gained 0.5 per cent. The Kuwait Stock Exchange Index fell 0.1 per cent and Qatar's Doha Securities Market Index declined 0.5 per cent. Oman's Muscat Securities Market 30 Index added 0.2 per cent, gaining for a third day. The Bahrain All Share Index fell 0.1 per cent.

Al Babtain Power & Telecommunication Co. rose 0.9 per cent to 109.75 riyals. The Saudi Arabia-based supplier of transmission towers won two contracts worth 131.3 million riyals ($35 million) to supply towers to an Indian company called KIC.

Housing Finance Co. SAKC rose 1.8 per cent to 285 fils. The Kuwaiti mortgage provider said first-quarter net income surged fourfold to 4 million dinars.

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