Emaar’s earnings lifts Dubai to near-5yr high

Reuters/Dubai

Dubai’s blue-chip Emaar Properties rallied yesterday after posting estimate-beating earnings, spurring buying across the market and lifting the bourse to a near five-year high.

The emirate’s largest developer posted a 10% increase in profit on higher domestic sales. It beat analysts’ estimates by a margin of 20%.

Shares in Emaar climbed 2.9%, extending their 2013 gains to 57.3%.

Dubai’s index rose 2% to its highest close since November 2008, recovering ground lost by profit-taking in the last few sessions.

Abu Dhabi’s measure climbed 0.4%, up 47.6% in 2013.

In Doha, the benchmark gained 0.3%, rising for the first session in last three since Thursday’s 58-month peak. The market traded for shorter hours yesterday after a late start to the session due to technical problems at the exchange.

 Buying shifted to lenders after earnings from Industries Qatar’s disappointed investors. Shares in the petrochemical firm fell 2.9%.

 Doha Bank climbed 2.6%.

 In Saudi Arabia, banks led a rally after loss-making telecommunications operator Zain Saudi reached an agreement with creditors to extend its outstanding $2.3bn Islamic loan facility by five years.

 Zain shares rose 0.5% but also lifted the sentiment in the banks and those exposed to the firm’s debt.

Al Rajhi Bank, the largest Saudi lender by market value, rose 1.7%, while small-caps Bank Albilad and Bank Aljazira surged 9.9 and 5.4% respectively. The index rose 0.9% to 7,864 points, halting a four-session losing streak and climbing to a near 16-month high. It faces resistance at 7,944 points - the peak of April 2012. Trading volumes surged to their highest since June 17.

Elsewhere, the Kuwait index declined 0.2% to 8,064 points, the Oman index slipped 0.6% to 6,673 points and the Bahrain index edged up 0.09% to 1,192 points. In Egypt, the benchmark index snapped a four-session losing streak and gained 0.8%.