Property stocks take Dubai index to 20-month high
Dubai, September 19, 2012
Property stocks led Dubai's stock index to a 20-week high as short-term traders took upbeat global cues to increase their market exposure, while other Gulf Arab bourses also advanced.
Dubai's benchmark climbed 1.1 percent to 1,610 points, up 4 percent in September.
Emaar Properties and Deyaar Development rose 1.4 and 1.3 percent respectively, with real estate-related stocks usually the most liquid and so a regular target for short-term traders looking to profit from more upbeat market sentiment.
Contractor Arabtec gained 0.4 percent. Project delays were to blame for Arabtec's second-quarter loss, its chief financial officer said on Tuesday, predicting the company would bounce back soon as contracts in Saudi Arabia and Abu Dhabi hit the bottom line.
While global market gains are being felt in the United Arab Emirates, muted expectations for local third-quarter results could stymie the rally.
"I don't think the Q3 results will have an impact on the market unless the (profit) increase is significant," says Nabil Al Rantisi, managing director of Mena Corp.
Rantisi says he is optimistic in the medium to long term, but warns the Dubai and Abu Dhabi benchmarks are likely to correct soon.
"The DFM will not break (below) the 1,500 level and Abu Dhabi could go back to 2,515," Al Rantisi adds.
Abu Dhabi's index edged up 0.1 percent to 2,614 points.
Elsewhere, Qatar's benchmark climbed 0.3 percent to 8,610 points, extending a sideways trend since Monday's four-month peak.
Service sector stocks led gains, with Qatar Electricity and Water and Qatar Telecom up 0.7 and 0.2 percent respectively. Industries Qatar adds 0.9 percent.
Kuwait's bourse rose for a third day since Sunday's three-week low, climbing 0.7 percent to 5,873 points. - Reuters