Markets in the United Arab Emirates rise in early trading, led upwards by real estate stocks.
Real estate leads market gains
Markets in the United Arab Emirates rose today, led upwards by real estate stocks. In Dubai, Emaar Properties added the most points to the index, rising 3.74 per cent in early trading. Union Properties also gained 5.26 per cent early on. Earlier the developer said its shareholders had approved the issuance of unconvertible bonds worth Dh2.5 billion (US$680.6 million). The benchmark, DFM, rose as a whole by 1.08 per cent. In Abu Dhabi, Emirates Telecommunications surged 7.44 per cent this morning, leading a lift of the benchmark which closed up 2.44 per cent. The positive trading tracked strong Saudi Arabian gains in the previous session. The Saudi benchmark TASI ended more than 5 per cent higher yesterday. "Given the strong session in Saudi Arabia yesterday we may see some speculative buying, some stability in UAE, but until people see the full-year earnings they will be cautious," says Matthew Wakeman, director, cash and equity-linked trading at EFG-Hermes. A rally in the oil price that saw US crude settle more than 6 per cent higher on Friday will also be supporting sentiment, Wakeman says. Wakeman also expects speculative buying to lift Qatar's benchmark. QSI, which on Thursday broke a nine-day losing streak as investors snapped up bargains. * Reuters