DUBAI: United Arab Emirates stock markets surged Tuesday, resuming their bullish momentum after a sluggish start to the week, while weak earnings ahead of a new share listing weighed on Qatar. Other regional markets were mixed.
Dubai’s index rose 1.8 percent, taking its 2014 gains to 24.5 percent – though it has remained in a range since hitting a five-year high on Feb. 17.
Shares in Union Properties led trading volumes and jumped 5 percent. The firm Monday proposed increasing the limit on foreign investors’ ownership of it to 25 percent.
Firms in the United Arab Emirates and Qatar are preparing for an upgrade of their markets to emerging market status by index compiler MSCI, which will take place at the end of May.
This is expected to draw about $500 million worth of passive foreign funds to each market, and more money in other types of funds.
In Qatar, Nakilat, formally called Qatar Gas Transport Co., fell 2.2 percent after one of the world’s largest shippers of liquefied natural gas posted a 13 percent drop in fourth-quarter net profit Tuesday. It made a net profit of 176.5 million riyals ($48.5 million), trailing an analyst’s estimate of 201 million riyals.
Qatar Islamic Bank tumbled 6.2 percent after the date passed for investors to qualify for its dividend.