Dubai's shares are driven higher as investors accumulate stock, speculating that Emmar Properties would post strong earnings.
Emaar Properties leads Dubai market surge
Dubai shares surged again yesterday as investors accumulated stock amid speculation that Emaar Properties, one of the region's largest developers, would post strong earnings for the fourth quarter.
Emaar's shares gained 1.8 per cent to Dh2.79 on the Dubai bourse yesterday. The Dubai Financial Market General Index rose 1.2 per cent to 1,453.53. "Retail investors have been buying up shares all week, with the view that the quarterly results will be positive," said Marwan Shurrab, the chief trader at Dubai's Gulfmena Investments.
"Emaar has been consistently hitting highs during the day, losing some steam, and then closing just under the high - making entry points very tricky."
The developer behind the Burj Khalifa, the world's tallest building, is expected to report a net profit of Dh474.6 million. Emaar reported a Dh273.4m net profit last year.
Abu Dhabi shares also rose after dividends matched expectations of shareholders. National Bank of Abu Dhabi rose 1.4 per cent to Dh10.85 after it announced on Tuesday a 30 per cent cash dividend on Tuesday and a 30 per cent distribution of bonus shares.
The UAE exchanges were buffeted last year by the Arab Spring and Europe's debt crisis but investors generally held onto their stocks in the expectation of generous dividends.
Elsewhere in the region: Kuwait's measure slipped 0.2 per cent to 5,856.40; Bahrain declined 0.2 per cent to 1,136.83; Oman and Qatar were little changed at 5,560.40 and 8,570.41, respectively. The Saudi Tadawul All-Share Index closed up 0.5 per cent to 6663.48.