Real estate continues to drive UAE stock marts’ positivity

Reuters/Dubai 

Markets in the United Arab Emirates gained yesterday on positive sentiment towards the country’s property sector, as encouraging second-quarter numbers fuel buying, with Dubai’s index rising for a fifth straight session to a fresh 13-week high.

Dubai’s index index jumped 1.6% to 1,575 points, its highest close since May 3, buoyed by further advances in real estate-linked shares.

Heavyweight Emaar Properties gained 1.2%, hitting a new 15-month high. Other gainers included Arabtec , up 1.7%, and Deyaar Development, which registered its largest one-day gain since March 11, jumping 14.8% to a 15-week high.

The positive tone also helped Dubai Financial Market , the Gulf’s only listed bourse, shake off a 31% fall in second-quarter profit to gain 1.5% on the day.

In Abu Dhabi, real estate was also the driver as the index advanced for the sixth session in seven, up 0.1% to 2,511 points.

Aldar Properties, which is due to report its Q2 numbers tomorrow, climbed 3.3% to its highest close since March 28. Sorouh Real Estate rose 1.9%.

Egypt’s main index rose 0.9% to 5,034 points, its seventh straight gain, driven by optimism that a new cabinet put in place by President Mohamed Mursi will move faster than its predecessor on urgent reforms and foreign financial aid.

Mursi reinstated an investment minister, a role that was dropped in the previous, army-backed administration. Investors also welcomed the appointment of the relatively young Hatem Saleh as trade minister.

In Kuwait, the benchmark ticked up in late trade, closing 0.2% higher at 5,733 points. Kuwait Projects Company, which reported marginal growth in quarterly net profit but said it was positive about its outlook for the latter half of 2012, gained 1.4%.

Saudi’s index slipped 0.1% to 6,945 points on profit-taking to give up the previous day’s nine-week high.

Market heavyweights dropped as six of the seven largest stocks by market value finished down — the exception being Saudi Basic Industries Corp, which ended 0.6% higher.

Bahrain’s index slipped 0.2% to 1,096 points, a fresh nine-year low, while in Oman, the measure halted two sessions of sharp gains to close 0.5% lower at 5,439 points.