Gains for Emaar lift Dubai stock index

Dubai’s stock market extended its rally yesterday, backed by solid gains from property developer Emaar, whereas other markets in the region closed mixed amid muted trading and profit taking ahead of the Eid holiday.

The Dubai index jumped 1.4 per cent, continuing its rally since the emirate announced a series of initiatives to reduce corporate costs and stimulate growth.

The index’s main support came from a 4.1 per cent jump by property developer Emaar and a 1.2 per cent rise by Dubai Islamic Bank which rallied for the second session in a row after its Dh5.1 billion rights issue was nearly three times oversubscribed. Arabtec fell 1.7 per cent, as traders took profit following a two-day rally that sent the shares more than 10 per cent higher.

The Abu Dhabi index added 0.9 per cent – albeit amid soft trading – backed by First Abu Dhabi Bank which rose 1.6 per cent and property developer Aldar, up 1.4 per cent.

Saudi and Qatar were in weaker territory, most likely due to profit taking ahead of Eid holiday that marks the end of the Muslim fasting month of Ramadan.

Trading in the Arabian Gulf is usually muted ahead of holidays as some traders cash in shares and are generally cautious of any developments in global markets during the closure of their bourses.

Eid holiday begins on Wednesday in the Saudi market and on Thursday in UAE markets, extending into the first few days of next week.

The Saudi index lost 0.4 per cent with 114 declining stocks out of 176 being traded during the session. Property developer Jabal Omar and telecoms firm Mobily fell 2 per cent and 5.9 per cent respectively.

Petrochemicals firm Sabic and Riyad Bank rose 0.8 per cent and 1.4 per cent respectively.

In Doha, the index closed 0.2 per cent down, squeezed by losses among financial stocks.

Qatar National Bank and Qatar Islamic Bank lost 1.4 per cent and 0.5 per cent respectively while Industries Qatar rose 1.4 per cent.

In Egypt, the index fell 1.4 per cent with 21 of its 30 listed stocks incurring losses ranging between 0.1 per cent and 6.1 per cent.

The index in Kuwait shed 0.6 per cent, while the gauge in Bahrain added 0.5 per cent. In Oman, the index was flat.