Markets Wrap: Dubai's index hit a 10-day closing high as investors targeted high dividend yield stocks.
Foreign investors eye Emaar
The Dubai Financial Market index hit a 10-day closing high as investors targeted high dividend yield stocks and Qatar's market rallied for a fourth session.
Dubai's benchmark rose 0.6 per cent to 1,601 points, its highest close since last week.
Emaar Properties climbed 0.5 per cent amid sustained interest from foreign investors betting that Dubai's long-troubled property sector is showing signs of recovery.
The emirate announced last month plans for a huge tourism and retail development including the largest shopping mall in the world to be built by conglomerate Dubai Holding and Emaar. The budget carrier Air Arabia and the telecom operator du advanced 2.6 per cent and 0.9 per cent respectively, with the pair expected to offer high dividend yields. "UAE markets will be buoyant in the short term on dividend expectations and government budget announcements but the real catalyst ie growth, is weak," said a Dubai-based trader, speaking on condition of anonymity. Dubai's top-listed bank, Emirates NBD, added 0.7 per cent after it agreed to buy a 95.2 per cent stake in BNP Paribas' Egyptian arm, expanding its footprint.
In Abu Dhabi, banks helped to lift the index, which closed 0.3 per cent higher at 2,620 points.
Elsewhere, Doha's measure climbed 0.4 per cent to 8,443 points, its highest close sincelast month. The market rallied on what analysts said was a technical breakout.
The next resistance is expected at 8,450. Gainers outnumbered losers 15 to two on the 20-stock index.