Dubai's stock market rose this morning, lifted by Drake & Scull International (DSI), as investors piled into the contracting company on the belief that it is undervalued.
DSI, the top traded on the Dubai bourse, rose 0.6 per cent to 90 fils. About Dh20 million worth of shares changed hands.
Property companies have rallied recently after second quarter results exceeded analyst expectations.
"It's a play on what happened in the real estate sector," said Marwan Shurrab, the vice president and chief trader at Gulfmena Investments in Dubai. "Drake & Scull International was a laggard, and the market was strong. The stock is trading more technical than any major news right now."
Emaar Properties, the developer behind the world's tallest skyscraper, gained 0.8 per cent to Dh3.45. Arabtec Holding, the region's biggest contracting firm, rose 0.3 per cent to Dh2.97. Arabtec is due to hold its board of director meeting to discuss its quarterly results on August 7, the company said in a statement posted on the Dubai bourse website.
The Dubai Financial Market General Index gained 0.1 per cent to 1549.33 points.
Aldar Properties, the developer behind Yas Island and Ferrari World, jumped 3.4 per cent to Dh1.20 in Abu Dhabi. Sorouh Real Estate, the developer behind Reem Island's Sun & Sky Towers gained 1.9 per cent to Dh1.07. The Abu Dhabi Securities Exchange General Index slipped 0.2 per cent to 2510.17, weighed by Etisalat.
The country's biggest operator, which holds the largest weighting on the emirate's benchmark, fell 0.8 per cent to Dh9.36.
Elsewhere in the region, Kuwait's measure added 0.02 per cent to 5721.72 points. Bahrain's index added 0.1 per cent to 1100.96 points. Oman's MSM 30 Index gained 0.7 per cent to 5469.45 points. Qatar's QE Index slipped 0.1 per cent to 8306.66 points.
The Saud Tadawul exchange was closed for the day.