0 comments

Gains in Emaar Boost Dubai’s Stocks

by on July 27, 2014 9:51 am GMT
 

Emaar shares rose to 9.70 dirhams, set for the biggest advance in a week. DIB gained to 7.29 dirhams.

Shares in Dubai ended a three-day losing streak, led by gains in Emaar (EMAAR) Properties PJSC amid bets the developer’s second quarter earnings will exceed investor expectations.

Dubai-based property and construction companies are benefiting from a real estate-led economic recovery in the emirate, where prices for mid-range apartments rose 43 percent last year.

The DFM General Index (DFMGI) advanced 0.6 percent to 4,681.50, the biggest jump since July 21, at 11:47 a.m. in the emirate. Emaar, the developer of the world’s tallest tower, climbed 1.9 percent. Dubai Islamic Bank PJSC., the biggest Shariah-compliant lender in the United Arab Emirates, added 1.1 percent. Qatar’s QE Index dropped 0.6 percent to 12,874.27.

Emaar is forecast to report second-quarter net income of 936 million dirhams ($255 million), up from 675 million dirhams a year earlier. The company doesn’t say when it will release earnings. Nakheel PJSC, developer of the man-made islands off Dubai’s coast, said on July 9 first-half profit surged 54 percent to 1.85 billion dirhams.

Abu Dhabi’s benchmark ADX General Index (ADSMI) added 0.3 percent to 4,967.57. Stock markets in Saudi Arabia, Oman and Kuwait are closed all week for a religious holiday.