Dubai stocks rise for 7th session before Eid break

Reuters/Dubai

Dubai’s index gained 0.7% yesterday to its highest close since November 2008, rising for a seventh straight session, as retail investors continued to speculate actively ahead of long holidays.

Shares in Dubai Financial Market, the Gulf’s only listed bourse, rose 1.9%, while Dubai Islamic Bank added 4.1% to 3.77 dirhams in its highest turnover since April.

DIB broke above major technical resistance at 3.66 dirhams, its peaks in March and July, and a double bottom formed by the 2009 lows points up to around 5dirhams in the long term.

UAE markets will close for Eid holidays from Wednesday until August 11 or 12, depending on the sighting of the moon; investors’ willingness to hold shares over the long break was a bullish sign.

Most other Gulf markets were narrowly mixed. In Kuwait the market climbed 0.5%, trading within a range of 140 points for the last two weeks. The market is up 35.8% year-to-data, backed by hopes that changes in the government bode well for the country’s economy.

Kuwait formed a new cabinet on Sunday following late July parliamentary elections, which brought in an assembly seen as more amenable to the government than some of its predecessors.

Oman’s index climbed 0.7% to its highest finish since February 2011, tracking the regional rally.

Egypt’s market gained 0.2% to its highest close since February 21.

 The Muslim Brotherhood on Monday rejected pleas from international envoys to “swallow the reality” that deposed Mohamed Mursi will not return as Egypt’s president. But the army offered to free some jailed Brotherhood members and give the group three ministerial posts.

“People have a feeling that they’ll go for holidays and everything will be better when they return,” said Mohamed Radwan, director of international sales at Pharos Securities. “The ending of the political stress is imminent, but whether this happens peacefully or with force will dictate the market direction after Eid.”

Egypt’s bourse will be closed tomorrow and resume trading on Monday August 12, according to a communication to brokers.

Building and construction sector stocks rose on hopes that the industries will benefit if investment picks up with returning economic and political stability.

Egypt’s largest steel maker Ezz Steel and South Valley Cement jumped 5% and 4.5% respectively.

Elsewhere, Abu Dhabi’s index ended flat at 3,929 points; while Bahrain’s index ticked up 0.01% to 1,200 points.