Emaar Properties continues upwards

Dubai blue chip Emaar Properties continued to rebound in heavy trade yesterday but regional stock markets were mostly lacklustre, partly because of weak global bourses and oil prices.

Emaar, which had been trading near 14-month lows, surged 3.2 per cent on Wednesday as some funds returned to the stock, apparently attracted by undemanding valuations compared to emerging market peers.

The stock yesterday climbed a further 1.8 per cent in its heaviest volume this year. However, this failed to lift Dubai’s stock index, which was flat as declining issues outnumbered gainers by 20 to nine.

Saudi Arabia’s index edged up 0.3 per cent. Al Jazira Bank closed 0.5 per cent lower after the securities regulator approved its request to conduct a 3 billion riyal rights issue.

Saudi Industrial Export Company, which had soared 77 per cent in highly speculative trade over the past six days, fell back 10 per cent in its heaviest volume since 2013.

In Qatar, the index dropped 0.3 per cent as Qatar Islamic Bank went ex-dividend, tumbling 4.1 per cent.

But Commercial Bank jumped 5.8 pe rcent. Sources told on Tuesday that the bank had agreed in principle to sell its 40 per cent stake in Abu Dhabi-listed United Arab Bank to UAE-based Tabarak Investment. The sale will be finalised shortly with a formal announcement to be made next month, the sources said, declining to be named.

Meanwhile, the Korean won, Indonesian rupiah and South African rand led a swathe of emerging market currencies lower, as a stronger dollar courtesy of the highest US Treasury yields in four years also soured sentiment for stocks and bonds.

A swoon in commodity markets did not help either and even a 2.2 per cent jump by Chinese stocks in what was their best day in 18 months could not prevent a more than 1 per cent fall of MSCI’s widely-tracked 24-country EM index.

It was its heaviest tumble since a global rout almost two weeks ago and there were longer milestones looming for various individual markets.

A near 1 per cent slide in Polish stocks left them flirting with their lowest level since August. It was partly the global mood but also political angst.