Dubai shares rise to their highest level in seven months while Abu Dhabi stocks are up 3.35 per cent.
Property shares lead rally in UAE stock markets
Dubai shares rose to their highest level in seven months yesterday while Abu Dhabi stocks were up 3.35 per cent, led by the property developers Aldar and Sorouh. A trade survey released by HSBC provided more upbeat news for markets, with the country named as the place showing the greatest level of optimism about growth in foreign trade over the next three months. The survey indicated that almost three quarters of UAE importers and exporters expected trade volumes to increase or stay the same, against 53 per cent in Hong Kong and 64 per cent in Singapore.
Bank stocks saw some of the biggest gains with Dubai Islamic Bank jumping 6.96 per cent while Ajman Bank advanced 10.25 per cent. "Retail investors are looking into cyclical stocks now, which includes real estate in the Middle East, to catch the next mover," said Joe Kawkabani, managing director and head of asset management at Algebra Capital. The rally in property shares was triggered by a report that the Dubai property developer Emaar had been selected by Saudi Arabia's Kingdom Holding to help build what will be the world's tallest tower, in Jeddah.