U.A.E. Shares Advance on Property Company Earnings; Qatar Gains
United Arab Emirates shares gained, sending Dubai’s benchmark stock index to
the highest in more than a week, after earnings at the Persian Gulf
country’s real estate companies beat estimates.
Emaar Properties PJSC (EMAAR) rose for a second day after the developer of
the world’s tallest skyscraper said quarterly profit more than doubled. In
Abu Dhabi, Sorouh Real Estate (SOROUH) PJSC rallied 1.9 percent after net
income climbed 34 percent. The DFM General Index increased 0.3 percent to
1,542.64, the highest close since July 18. The measure rallied 6.3 percent
in July, the first monthly gain since February. Abu Dhabi’s gauge rose 0.5
percent and Qatar’s QE Index (DSM) advanced 0.3 percent.
Gains are being driven “by second-quarter earnings, which is the local
catalyst, and then you have that combined with some improvement in the
global markets,” said Chahir Hosni, equity sales manager at EFG-Hermes
Holding SAE in Dubai.
Emaar, also the owner of the world’s largest shopping mall in Dubai and the
stock with the biggest weighting on Dubai’s index, said July 29 net income
climbed to 614 million dirhams ($167 million), beating estimates. The shares
increased 0.9 percent to 3.4 dirhams, extending their gain this year to 32
percent, compared with a 14 percent advance for Dubai’s DFM General Index. (DFMGI)
Global Stimulus
Sorouh, the developer that’s in merger talks with Aldar Properties PJSC (ALDAR),
surged to 1.05 dirhams, the highest close since June 11. Net income rose to
148.2 million dirhams from 110 million dirhams a year earlier, also beating
estimates.
Asian stocks advanced today, with the MSCI Asia Pacific Index gaining 1.2
percent at 4:49 p.m. in Dubai, on speculation the Federal Reserve and the
European Central Bank may signal their readiness to stimulate growth amid
signs of a global economic slowdown, boosting the earnings outlook for
exporters. The MSCI Emerging Markets Index increased 1 percent.
About 91 million shares traded in Dubai on 31 July 2012, compared with the
12-month daily average of 139 million shares.
The Bloomberg GCC 200 Index (BGCC200) rose 0.5 percent and Saudi Arabia (SABIC)’s
Tadawul All Share Index gained 0.8 percent. Bahrain’s BB All Share Index (BHSEASI)
added 0.1 percent, while Kuwait’s Stock Exchange Price Index (KWSEIDX) and
Oman’s MSM30 Index (MSM30) slipped 0.1 percent.
