Dubai index surges on Emaar gains

The Dubai stock market rose sharply yesterday, boosted by blue-chip Emaar Properties, while Egypt gained for a third straight day on rebounding bank shares.

In Dubai, the index added 1.5 per cent to 2,573 points, its biggest gain in two and a half months. Emaar surged 6.4 per cent, its largest rise since June 2017, after saying it had started business development operations in China.

A cheap valuation, at 5.4 times trailing earnings, also encouraged buying back of the stock.Deyaar Development increased 4.1 per cent but another Dubai real estate stock, Union Properties, slid 2.6 per cent.

Outside the real estate sector, Takaful Emarat rose 4.1 per cent after Goldilocks Investment, part of Abu Dhabi Financial Group, bought a 29.5 per cent stake in the company.

In Abu Dhabi, the index also closed up by 0.45 per cent to 4,837 points with gainers including Eshraq, which gained 2.8 per cent and Agthia, putting on 1. 8 per cent.

Losers included Dana Gas, which slipped 4.4 per cent and Etisalat, down 0.5 per cent.

The Egyptian blue-chip index was up 1.5 per cent to 12,857 points with its biggest bank, Commercial International Bank, increasing 3.2 per cent. Banks have tumbled in recent weeks on concern about proposed heavier taxation on their Treasury holdings, but the stocks’ rebound may mean that factor has faded.

El Sewedy Electric jumped 6.2 per cent when it resumed trading in the last half hour. Trading had been halted pending details of a deal it signed to participate in construction of a $3 billion dam in Tanzania.

Global Telecom soared 9.7 per cent. The Egyptian exchange said 34.4 million shares of the company were block-traded for 109.9 million Egyptian pounds (Dh22.53m).

Saudi Arabia’s index gained 0.7 per cent to 7,890 points with its largest lender, National Commercial Bank, climbing 2.9 percent and Saudi Basic Industries gaining 0.7 percent. In a report this week, Morgan Stanley research said it was keeping an off-benchmark “overweight” view of Saudi equities.

Brent oil rose to about $61 a barrel yesterday, supported by an industry report showing a drop in US crude inventories, a cut in Libyan exports and an Opec-led deal to trim output.