UAE bourses rally in heavy trading

Reuters/Dubai

Dubai Bellwether Emaar Properties added 1.8% yesterday. “We have seen a recovery in the UAE’s real estate market and especially in Emaar and that has impacted the market positively,” said an analyst

Bourses in the UAE rallied in heavy trade yesterday as end-of-week gains on world markets boosted local investor sentiment. Dubai’s index rose 1%, breaking out of an eight-session sideways trend and closing above a resistance level at 1,570 points. Daily trading volumes were the highest since July 18. Investor participation was expected to rise this month as investors returned from their summer holidays, while UAE markets are catching up with gains in world shares. US stocks rose on Friday as anaemic American jobs growth fuelled investor bets the Federal Reserve would launch another round of monetary stimulus for the world’s biggest economy. The Fed starts a two-day policy meeting on Wednesday and markets will keenly await the US central bank’s statement on Thursday and a media briefing by chairman Ben Bernanke. “We have outperformed emerging markets and I think at this point in time there are two catalysts we will react to - the global growth outlook and local quarterly results,” said Ali Adou, portfolio manager at The National Investor. Dubai Bellwether Emaar Properties added 1.8%, Deyaar Development gained 3.3% and mortgage lender Tamweel climbed 4.1%. “We have seen a recovery in the UAE’s real estate market and especially in Emaar and that has impacted the market positively,” Adou added. In Abu Dhabi, Sorouh Real Estate jumped 5.4% and Aldar Properties added 1.6%. Banks also advanced, with First Gulf Bank and National Bank of Abu Dhabi rising 1.7% and 4.4% respectively. Abu Dhabi’s index climbed 1%, its biggest daily rise since March 12. In Saudi Arabia, the index fell 0.1% as investors cashed in Saturday’s gains in the bank and petrochemical sectors. Al Rajhi Bank slipped 0.3%, Samba Financial Group dropped 1.7% and Saudi Basic Industries Corp (Sabic) eased 0.3%. The bank sector reported strong lending and deposit growth earlier this year, but this will likely slow in the second-half of 2012. “We’re expecting H2 to be weaker than H1 due to moderation in lending - we saw some already happened in Q2,” said Asim Bukhtiar, head of research at Riyad Capital. “What is positive for banks is the continued strength of the (stock) exchange. The higher stock turnover, commissions and bank fees should help their numbers for the second-half.” Shares in Kingdom Holding surged 6.1% in heavy trade to close at their highest level since September 2008. Investors have been speculating on the stock.Oman’s index rose 0.6%, closing at its highest close since July 2. Regional and foreign investor interest has picked up in Muscat’s bluechips. Elsewhere in the Gulf, Kuwait’s measure fell 0.4% to 5,885 points, while Bahrain’s gauge climbed 0.1% to 1,074 points. Egypt’s index rose 0.5% to 5,570 points.