Bloomberg News

Dubai Shares Rise as Markets Open After Holiday; Tabreed Gains

November 09, 2011

Nov. 9 (Bloomberg) -- Dubai’s shares advanced to the highest level this month as trading resumed following a Muslim holiday and after National Central Cooling Co. said quarterly profit jumped 55 percent.

Emaar Properties PJSC, the developer of the world’s tallest tower, rallied 2.3 percent. National Central Cooling Co., the United Arab Emirates utility known as Tabreed, surged to the highest in more than a month. The DFM General Index gained 0.4 percent to 1,390.07 at the 2 p.m. close in Dubai. The market was shut for Eid al-Adha the previous three trading days. The MSCI Emerging Markets Index fell 0.4 percent as of 4:17 p.m. in the emirate, after rising as much as 1.1 percent.

There is “some catch up for the Middle East markets re- opening today post the Eid holiday, but on low volumes as many locals will stay away for the whole week,” said Shehzad Janab, the head of asset management at Dubai-based Daman Investments. “An absence of regional news means we will continue to look at developments in Europe.”

European stocks, which rose 0.9 percent yesterday, advanced as much as 1 percent today, before Dubai’s market closed. They later tumbled 2.3 percent as optimism over Italian Prime Minister Silvio Berlusconi’s offer to resign waned and the spread between Italian and German bond yields widened to the most since the introduction of the euro and Italy’s credit- default swaps jumped to a record.

Low Volumes

Tabreed’s net income for the third quarter advanced to 54.1 million dirhams ($15 million) from 35 million dirhams as the company delivered projects and cut costs. Eleven new plants came on line during the third quarter, while capacity increased at two existing plants, the company said Nov. 3. The shares rallied 1.5 percent to 66.8 fils, the highest close since Sept. 27.

About 33 million shares traded today in Dubai, compared with a 12-month daily average of 106 million, according to Bloomberg data. Emaar gained the most since Oct. 30 to 2.70 dirhams.

In Qatar, Doha Bank QSC rose 1.1 percent, the most since Oct. 30, to 64.3 riyals after the country’s fifth-largest lender by market value said it may make an acquisition before the end of 2012 as part of a broader plan to expand.

Qatar’s QE Index jumped 0.9 percent and Bahrain’s BB All Share Index advanced 0.4 percent. Abu Dhabi’s ADX General Index gained less than 0.1 percent. Markets in Saudi Arabia, Kuwait and Oman were closed for a Muslim holiday.

--Editors: Susan Lerner, Linda Shen

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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