DFM, ADX, Gain on Earnings and Oil Price RiseDrops

DUBAI — UAE and Qatari shares advanced for a second day after earnings at property companies and banks boosted investor sentiment and oil advanced to a one-month high.

By (Bloomberg)

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Published: Mon 3 Aug 2009, 10:58 PM

Last updated: Sun 5 Apr 2015, 9:31 PM

The Dubai Financial Market General Index advanced 0.1 per cent and Qatar’s DSM 20 Index added 0.8 per cent. Oman’s measure gained 1.9 per cent. Drake & Scull increased 2.3 per cent to Dh0.90 after reporting second-quarter profit of Dh86.6 million ($24 million).

Arkan, an Abu Dhabi-based construction-supplies maker, increased 1.2 per cent to Dh4.08. The company posted a profit of Dh24.65 million dirhams. Arkan had a loss in the previous three months.

Ezdan climbed 9.9 per cent, the most since March 25, to 22.2 riyals after Sobhi Ali said he expects rental rates in Qatar to stabilise next year as increased demand absorbs new units.

Emaar Properties PJSC, the UAE’s largest developer and the Dubai index’s most weighted company, declined 1.1 per cent to Dh2.71. The company reported a revenue increase to Dh1.94 billion and a second-quarter loss after a writedown related to bankrupt US homebuilder John Laing Homes.

Drake & Scull International PJSC, a Dubai-based construction-engineering contractor which started trading in March, surged to a one-month high. Arkan Building Materials Co. gained 1.2 per cent as it returned to profit in the second quarter. Ezdan Real Estate Co., Qatar’s largest developer, climbed the most since March after its chief financial officer said it aims to complete seven new compounds with a total of 2,000 units by next year. Abu Dhabi’s benchmark added 0.6 per cent to 2,818.87, the highest close since June 17. “Most of the real estate companies and banks reported pretty okay performance figures,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. “Since they are the ones who determine the economic cycle, investors are getting encouraged.”

National Bank of Abu Dhabi PJSC, the U.A.E.’s second- biggest bank by assets, last week posted better-than-expected profit. The four biggest companies by weighting in Dubai’s benchmark index are either property companies or banks and in Abu Dhabi the second and third largest are banks, according to data compiled by Bloomberg. A rebound in oil prices may help Gulf economies, which produce about 20 per cent of the world’s crude, emerge faster than others from the global slump. Crude advanced to $69.45 a barrel on July 31, more than double its December low of $32.40.

The UAE’s Minister of Economy, Sultan Bin Saeed al-Mansouri, said on May 26 that the region was emerging from the crisis as banks have begun lending again “to different sectors in the economy.”

“Even with news of this magnitude the market shrugged it off and traded positively, showing its ability to handle negative news without any major shakeups,” Jayabhanu said. Kuwait Stock Exchange advanced less than 0.1 per cent. Saudi Arabia’s Tadawul All Share Index retreated 0.8 per cent to 5,740.82 at 2:11 p.m. in the kingdom. Bahrain’s measure lost 1 per cent.—

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