Dubai stocks hit two-year high
Dubai, January 10, 2013
Bullish sentiment towards UAE equities propelled Dubai's bourse to a two-year closing high and Qatar's market also gained, driven by bets on stronger dividends and 2012 profit.
Dubai's index rose 0.6 percent to close at 1,756 points, its highest close since November 2010.
The market has yet to break the intraday high of 1,778 points hit on March 2012. Dubai's benchmark is up 4.5 percent for the week.
"If Dubai can close above the next resistance zone - 1778.25/1791, it should then get up to the 1,885 area," says Bruce Powers, head of research and analysis at Trust Securities. "The zone could drop the market lower for a little while if resistance shows up, and there is a good chance of that."
Heavyweight Emirates NBD rose 1.9 percent, its sixth-straight advance, while builder Arabtec gained 1.5 percent.
Small-cap National Central Cooling (Tabreed) jumped 9.6 percent, having rallied almost 15 percent in the previous session. Traders say the move is speculative and lacks a fundamental reason, with Tabreed among the most liquid stocks on the bourse.
Abu Dhabi's market advanced 0.4 percent to finish at 2,728 points, its highest closing level since July 2011, taking gains for the week to 1.7 percent.
Dana Gas is the most liquid stock, rising 6.1 percent after its largest shareholder said it supported the firm's debt restructuring plan.
Aldar Properties and Sorouh Real Estate each advanced 1.3 percent. Sources told Reuters on Tuesday the two firms have agreed on initial merger terms.
In Qatar, the benchmark climbed 1 percent to 8,782 points, its highest close since April 2012.
Heavyweight Qatar National Bank is the main support, rising 2.9 percent. The lender is due to announce earnings on Sunday. The average forecast of analysts polled by Reuters expects QNB's fourth-quarter profit to increase 1.7 percent.
Other banks also gained. Commercial Bank of Qatar and Doha Bank advanced 1.7 and 2.9 percent respectively. - Reuters