Dubai stocks were set for the highest close in more than a week after profit at Emaar Properties PJSC (EMAAR) and Emirates Integrated Telecommunications Co. (DU) rose, boosting confidence in the emirate’s economic recovery.
Emaar, developer of the world’s tallest skyscraper, rallied 1.2 percent after the company said quarterly profit more than doubled, beating estimates. Emirates Integrated, the second- biggest United Arab Emirates phone company known as Du, advanced to the highest intraday level since April after second-quarter net income climbed 57 percent. The DFM General Index advanced 0.5 percent to 1,516.68 at 11:26 a.m. in the emirate, headed for the highest close since July 19. The Bloomberg GCC 200 Index (BGCC200) was unchanged while Qatar’s QE Index (DSM) slipped 0.1 percent.
“Investors are positive on growth in Emaar and Du’s profits,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “The recent figures solidify that Dubai’s recovery as a whole is real and is expected to continue its upward movement in the future.”
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 yesterday net income climbed to 614 million dirhams ($167 million) from 250 million dirhams a year earlier. The shares gained to as high as 3.28 dirhams before trading at 3.27 dirhams, set for the highest close since July 18. The shares have rallied 28 percent so far this year, compared with a 12 percent gain for Dubai’s DFM General Index. (DFMGI)
“The real estate market in Dubai is turning around,” Chairman Mohammed Alabbar said in the statement. “Emaar’s financial results for the first half of the year reflects the growing strength of Dubai’s economy.” Like most of its peers in the U.A.E., Emaar saw earnings drop after Dubai’s property market collapsed at the end of 2008 and caused residential values to fall by 60 percent or more.
Du, which competes in the U.A.E. with Emirates Telecommunications Corp., said net income after the 50 percent royalty payment to the government climbed to 325.5 million dirhams from 207.2 million dirhams a year earlier. The shares rose 0.9 percent to 3.21 dirhams, the highest since April 29.
About 14 million shares were traded in Dubai today, compared with the 12-month daily average of 138 million shares. The Islamic holy month of Ramadan , when Muslims fast from sunrise to sunset and business activity slows, is under way.
Elsewhere in the Persian Gulf, Abu Dhabi’s ADX General Index (ADSMI) fell less than 0.1 percent, Bahrain’s BB All Share Index (BHSEASI) was unchanged and Kuwait’s Stock Exchange Price Index (KWSEIDX) was little changed. Oman’s MSM30 Index (MSM30) declined 0.3 percent.
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