|
|
Dubai’s shares rose to a 57-month high yesterday as optimism on second-quarter earnings boosted buying, while foreign investors returned to lift Egypt’s market.
Qatar’s benchmark index slipped 0.2% to 9,398 points.
Shares of property firms, the main sector to benefit from a recovery in economic fundamentals, led gains in Dubai.
“There will be selective accumulation on stocks that beat earning once the numbers are out,” said Mohammed Ali Yasin, managing director of Abu Dhabi Financial Services. Banking sector is expected to post strong growth, which would justify higher profits for the year, he added.
Shares in builder Arabtec rose 4.2%, extending 2013 gains to 21%.
Five analysts polled by Reuters expect the firm to post a net profit average of 51.4mn dirhams ($13.99mn) for second quarter, swinging from a loss in the same period last year.
The firm had a nearly 30% over subscription for its $650mn rights issue earlier this month, after it extended the subscription period.
Emaar Properties and Dubai Investments Co climbed 1.9 and 7.1%.
Dubai’s index rose 2% to its highest since November 2008. Trading volumes climbed to one-month high.
Neighbouring Abu Dhabi’s measure also rose, up 0.9% to hit a fresh 57-month high. UAE companies are expected to post second-quarter earning results later in July.
In Cairo, the benchmark gained 0.6% on upbeat sentiment as an interim government sets out plans for a civilian transition.
The market fell in three of the previous five sessions since hitting a one-month high upon the ousting of President Mohamed Mursi by the military.
“The roadmap is clear on the political front and economically,” said Amr Reda, assistant vice-president, foreign sales desk at Pharos Securities. “Things are looking promising after Gulf countries provided Egypt with decent financial aid.”
UAE, Saudi Arabia and Kuwait have promised $12bn in aid packages to Egypt, which could help with fuel and grain shortages and a lack of foreign exchange reserves in the short term.
Many concerns remain, however, and the market will face renewed selling pressure should unrest escalate or if there are delays in forming a cabinet, analysts say.
A senior leader of Mursi’s party called for mass rallies across Egypt today, demanding their ousted president be reinstated.
Foreigners were net buyers, according to bourse data - this is a change in trend since the market’s slide in June, when the market dropped on rising political tensions that culminated to Mursi’s overthrow.
In Saudi Arabia, the index climbed 0.7% to its highest since April 2012.
Petrochemical shares boosted the index with Saudi Basic Industries Corp (Sabic) climbing 1.3%.
The chemicals giant is expected to post a 20% growth in quarterly earnings, according to an average forecast of 10 analysts polled by Reuters.
Upbeat global markets also helped sentiment in the dollar-pegged country.
Stocks on major bourses posted their best weekly gains since November on Friday, helped by corporate earnings reports and remarks by Federal Reserve officials calming investor fears about US monetary policy.
Elsewhere in the Gulf, Kuwait’s index edged up 0.01% to 7,883 points; Oman’s measure gained 0.4% to 6,518 points, while Bahrain’s gauge slipped 0.4% to 1,185 points.