Shares in Dubai surged yesterday amid increased optimism after Majid Al Futtaim, a retailer that owns and manages malls and hotels, reported on Monday a 21 per cent increase in profit.
Dubai developer profits spur stock
Dubai's stock market rose to its highest level in a month as investors speculated morerevenue from developers.
The rise came after Majid Al Futtaim, a mall and hotel management company, reported on Monday a 21 per cent profit increase last year from higher tourist traffic following the Arab Spring. Emaar Properties, which owns and manages the Dubai Mall, jumped 3.6 per cent to Dh2.55 a share.
Majid Al Futtaim, which is not publicly listed, said operating profits reached Dh2.7 billion from developments such as Mall of the Emirates. The Dubai Financial Market General Index rose 1.7 per cent to 1364.03, its highest since December 20.
Stocks trading under their par value triggered buying activity.
Shuaa Capital, one of the UAE's biggest investment banks, jumped 4.6 per cent to 50 fils. Tabreed, the Abu Dhabi utility company, rose 5 per cent to 50 fils.
"The market has reached to a point where the downside risk is minimal," said Tariq Qaqish, a senior fund manager at Al Mal Capital in Dubai. "Speculation on small stocks has encouraged a bigger pool of investors to participate."
The Abu Dhabi Securities Exchange General Index added 0.3 per cent to 2,361.55 points.
Elsewhere: Kuwait's index added 0.5 per cent to 5,820.6; Bahrain's measure gained 0.2 per cent to 1,144.38; Oman's MSM 30 Index was little changed at 5,593.63; Qatar's QE Index slipped 0.2 per cent to 8,386.88; The Saudi Tadawul All-Share Index moved 0.09 per cent higher to 6,466.54 points.