MARKET REPORT Union Properties helps Dubai rebound

Dubai stocks closed on a positive note on Thursday after 11 straight days of losses, while the Saudi market was flat as investors held back from taking new positions ahead of announcements of second-quarter company results.

The Dubai index inched up 0.2 per cent to 2,821 points, recovering from a course of unbroken declines since it recorded a two-month high on June 12.

Main support came from Union Properties, which jumped 9.3 per cent, and Dubai Commercial Bank, which rose 5 per cent.

Drake & Scull jumped 3.3 per cent to Dh0.75, reversing some of its earlier 5.3 per cent losses that sent the shares to Dh0.70, its lowest ever.

DSI shares have fallen in the past three sessions and are down nearly 67 per cent so far this year, as retail investors offloaded it amid concerns about its business outlook and an investigation into its former management team.

The company said in a bourse filing on Thursday that the recent sell-off of its shares was not related to any major news, but due to a financial institution selling shares of one of the investors under a previous financing agreement.

In Saudi Arabia, the index closed flat at 8,314 points, with many blue chips finishing in negative territory, as investors abstained from taking new positions before the announcement of second-quarter financial results from Sunday.

Property Developer Jabal Omar jumped 4.9 per cent and Makkah Construction rose 1 per cent.

Jabal Omar and Makkah have projects around the Grand Mosque in Makkah and shares of both companies often rise at this time of year as occupancy rates peak during the Hajj pilgrimage, which is expected to start in August.

Al Rajhi Bank shares lost 0.6 per cent, National Commercial Bank declined 1.3 per cent, and petrochemicals giant Sabic lost 0.8 per cent.

The Saudi index has risen 1.8 per cent since June 20, after index provider MSCI added the kingdom’s bourse to its emerging markets benchmark. In Abu Dhabi, the index rose 0.3 per cent to 4,560 points, backed by a 0.4 per cent rise for First Abu Dhabi Bank. Dana Gas, which fell 2.9 per cent earlier in the session, recovered to close flat. Egypt’s main index jumped 1.1 per cent to 16,349 points.