Markets Update: Dubai's shares rose to the highest in more than three months as higher-than-expected profits at UAE companies boosted confidence in an economic recovery.
Strong results boost Dubai shares
DUBAI // Dubai's shares rose to the highest in more than three months as higher-than-expected profits at UAE companies, including Emaar Properties, boosted confidence in an economic recovery.
Emaar, the developer of the Burj Khalifa, which reported a more than doubling of second-quarter profit last month, rose 1.8 per cent. Du, one of two phone companies in the UAE, gained for a fourth day. The Dubai Financial Market General Index climbed 1 per cent to 1,583.21 at 11:42 am in the emirate, the highest intraday level since May 6, taking its gain so far this month to 2.6 per cent. Qatar's gauge slipped 0.1 per cent, while the Bloomberg GCC 200 Index added 0.1 percent.
"Strong second-quarter earnings have attracted both local and foreign investors to certain stocks and improved sentiment overall," said Waleed Al Khateeb, a senior finance manager at Daman Securities in Dubai. "This is a good point of entry as fundamentals are looking good."
Emaar, which has the biggest weighting on Dubai's index, last month said profit climbed to Dh614 million dirhams from Dh250m a year earlier as Dubai's retail and tourism industries extend their best year since the 2008 property crash.
Emaar's profit topped the Dh545 million mean estimate of five analysts, according to data compiled by Bloomberg. The shares advanced to Dh3.48 today, set for the highest close since April 2011. They are up 35 per cent this year, compared with a gain of 17 per cent in Dubai's main gauge.
Du, formally known as Emirates Integrated Telecommunications, rallied 1.2 per cent to Dh3.45, set for the highest close since April 15. Du said in July net income after the 50 per cent royalty payment to the government climbed 57 per cent to Dh325.5m.
Elsewhere in the Gulf, Oman's MSM30 Index advanced 0.4 percent. Bahrain's BB All Share Index was unchanged while Abu Dhabi's ADX General Index and Kuwait's Stock Exchange Price Index gained 0.2 percent.
* Bloomberg News