Dubai confidence is back

Dubai's shares jumped yesterday after companies posted better than expected results in the second quarter and worries over Europe's debt crisis eased, boosting investor sentiment.

Emaar Properties increased 1.1 per cent to Dh3.46 on the Dubai Financial Market General Index. The developer reported a 45 per cent increase in quarterly profit to Dh614 million. The index gained 1.5 per cent to 1,575.32.

"Investor confidence is returning and Dubai's real economy and the real estate market seems to be moving a bit," said Saleem Khokhar, the head of equities at National Bank of Abu Dhabi.

Global markets rallied on Friday after data showed job growth last month surged to the highest in five months, and on signs Europe was getting closer to resolving its worsening debt crisis. The US' S&P 500 Index jumped 1.9 per cent to 1,390.99, while the Dow Jones Industrial Average gained 1.6 per cent to 13,096.20. In Europe, the Stoxx 50 Index surged 4.8 per cent to 2,372.58, while the DAX Index jumped 3.9 per cent to 6,865.66.

Aldar Properties rose 3.3 per cent to Dh1.24 in Abu Dhabi. The developer is expected to report its earnings on August 9. Sorouh Real Estate advanced 2.8 per cent to Dh1.10. The developer behind Reem Island's Sun & Sky Towers reported a 34 per cent increase in quarterly profit to Dh148.2m last week. The Abu Dhabi Securities Exchange General Index added 0.1 per cent to 2,511.38.

Elsewhere in the region, Kuwait's measure inched 0.1 per cent higher to 5,732.99. Bahrain's measure slipped 0.2 per cent to 1095.77. Oman's MSM 30 Index declined 0.4 per cent to 5,438.84. Qatar's QE Index gained 0.09 per cent to 8,340.04. The Saudi Tadawul All-Share Index remained broadly flat at 6,945.11.

halsayegh@thenational.ae