Dana lifts Abu Dhabi; Oman's Galfar jumps
Dubai, August 14, 2011
Dubai's index extended gains after a fresh set of second-quarter earnings but investors in the UAE reacted largely to a relief rally in global markets on Friday.
Property stocks, which attracted the most retail attention, led gains with bellwether Emaar Properties climbing 2.2 percent.
Drake $ Scull rose 1.7 percent after posting second-quarter net profit of 55 million dirhams on Thursday, marginally beating an analysts average forecast of 52.8 million dirhams.
Dubai's benchmark rose 1 percent to 1,477 points, clawing back losses to hit a six-day high.
'We've been building up positions because the market was due for a rebound,' says Haissam Arabi, chief executive and fund manager at Gulfmena Investments.
'We're sticking to markets with strong economic fundamentals like Saudi Arabia, UAE and Qatar and shying away from Egypt because of its political issues.'
Gulf markets slumped to multi-month lows last week when investor confidence regarding the state of the global economy was shaken amid fears of a double-dip recession following an unprecedented Standard & Poor's. US credit rating downgrade.
Abu Dhabi-listed Dana Gas leds gains in the emirate. The energy firm jumped 3.7 percent, rebounding from Thursday's 28-month low-- accounts for more than half of total shares traded.
It said on Wednesday it more than tripled its second quarter net profit and beating analysts forecasts. The overall Abu Dhabi index gained 0.3 percent to 2,597 points.
Elsewhere, Oman's index edged higher 0.5 percent to 5,455 points. Galfar Engineering surged 4.2 percent, rising from an all-time low, after posting second-quarter net profit increase of 12 percent to 2.6 million rials ($6.96 million), according to the bourse website. - Reuters