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Dubai shares rise on real estate optimism

  • A trader watches his monitor at the Egyptian stock exchange in Cairo April 1, 2014. (REUTERS/Mohamed Abd El Ghany)

DUBAI: Dubai’s benchmark index gained for the seventh time in eight days, as real estate companies rose, shrugging off an emerging markets drop. Qatar’s measure fell.

The DFM General Index rose 0.6 percent to 5,116.49 at the close in the emirate after increasing almost 1.6 percent. Emaar Properties PJSC, the stock with the highest weighting on the gauge, rose 1.9 percent. Arabtec Holding advanced on bets it may form an alliance with Abu Dhabi’s Aldar Properties PJSC. Qatar’s index declined 0.7 percent, the most in two weeks. The MSCI Emerging Markets Index fell 1.8 percent after the Group of Seven nations agreed to act against Russia and Standard & Poor’s cut the country’s rating.

Dubai’s gauge is up 52 percent this year, making it the best performer among more than 90 measures tracked globally by Bloomberg. Developers, and contractors in the emirate are benefiting from a real estate-led economic recovery and stand to gain further from about $8 billion of infrastructure spending planned before World Expo 2020. Emaar’s profit will more than triple by 2018, Chairman Mohamed Alabbar said on April 23.

“Emaar is seeing some foreign buying, the euphoria from the last week’s better-than-expected earnings is still there” Hisham Khairy, the Dubai-based head of institutional trade at Mena Corp. Financial Services LLC, said by phone. “Word between retail investors is that Arabtec and Aldar could form a strategic alliance.”

Arabtec, the largest listed builder in the United Arab Emirates, gained 2.9 percent to 8.99 dirhams, its highest close on record. The shares, which surged as much as 6 percent, have more than tripled this year. Aldar, Abu Dhabi’s biggest developer, which announced three residential projects valued at a total of 5 billion dirhams ($1.36 billion) on April 21, declined 1.2 percent.

Emaar, the developer of the world’s tallest tower, rose to 11 dirhams. Gulf Navigation Holding surged 15 percent as the owner and operator of crude and chemical tankers reported a first-quarter profit after loss in the year-earlier period.

Saudi Arabia’s Tadawul All Share Index advanced 0.2 percent, led by insurance stocks.

Egypt’s EGX-30 Index decreased 0.6 percent to 8,247.47, snapping a six-day winning streak. Finance Minister Hany Kadry said the Egyptian economy might grow between 2 percent and 2.25 percent in the current fiscal year, which ends in June. Economic reforms will be necessary to avoid a budget shortfall of 14.5 percent of gross domestic product, he said in an interview with ONTV.

Abu Dhabi’s ADX General Index fell 0.4 percent. Oman’s measure lost 0.8 percent, Kuwait’s benchmark retreated 0.3 percent and Bahrain’s gauge was little changed.

Israel’s TA-25 Index fell 0.5 percent to 1,383.41. Teva Pharmaceutical Industries Ltd. dropped 3.2 percent after its U.S.-listed shares retreated 2.3 percent on April 25. The yield on the government’s benchmark bonds due March 2023 dropped to 3.19 percent.

 
A version of this article appeared in the print edition of The Daily Star on April 28, 2014, on page 5.
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Summary

Dubai's benchmark index gained for the seventh time in eight days, as real estate companies rose, shrugging off an emerging markets drop.

The DFM General Index rose 0.6 percent to 5,116.49 at the close in the emirate after increasing almost 1.6 percent. Emaar Properties PJSC, the stock with the highest weighting on the gauge, rose 1.9 percent.

Qatar's index declined 0.7 percent, the most in two weeks.

Dubai's gauge is up 52 percent this year, making it the best performer among more than 90 measures tracked globally by Bloomberg.

Aldar, Abu Dhabi's biggest developer, which announced three residential projects valued at a total of 5 billion dirhams ($1.36 billion) on April 21, declined 1.2 percent.

Saudi Arabia's Tadawul All Share Index advanced 0.2 percent, led by insurance stocks.


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