A dealer gestures towards price movements on an electronic board at the Amman Stock Exchange, yesterday.
DUBAI: Dubai bluechips rose yesterday, although the wider index remains range-bound below a key psychological level, while most other Gulf Arab markets also advanced.
Dubai’s Emaar Properties climbed 3.4 percent to a 52-month high. Investor confidence remains upbeat in Emaar, despite fourth-quarter earnings missing estimates, as property prices in the emirate slowly recover.
Telecom operator du rose 4.7 percent to 4.69 dirhams, its highest close since October 2008.
“I think it’s trading at a premium to fair value which is justified considering the circa 10 percent growth in net revenues estimated for 2013,” said a Dubai-based trader who asked not to be identified. “I will not be surprised if it moves a little higher before falling back to 4.20 — 4.30 levels.”
Du’s fourth-quarter profit more than doubled as it wrote back tax provisions and its subscriber base rose.
Arabtec tumbled 9.7 percent, its lowest price since Jan. 3, as investors continue to react negatively to the shake-up announced by the developer last week.
Dubai’s measure advanced 0.4 percent to 1,936 points. It has been trading in a tight range just below 2,000 points since hitting a 39-month high on February 24.
In the UAE capital, the Abu Dhabi index declined for a second session, with traders targeting small-cap stocks — a pattern usually seen in a market lacking catalysts.
Eshraq Properties, which rose 1.6 percent, accounted for more than 40 percent of shares traded.
Saudi Arabia’s index gave back gains from the previous two sessions as bluechips weighed.
Banks were the main drag. SABB slipped 1.8 percent, while Banque Saudi Fransi and Samba Financial Group both fell 0.7 percent.
Of the 13 largest stocks on the bourse, 10 ended the session lower and the other three were flat.
Meanwhile, Egypt’s benchmark closed 0.2 percent higher, snapping a five-session losing streak.
Orascom Telecom was the main support, climbing 4.3 percent in its largest gain since January 2.
In Kuwait, the index extended recent gains, climbing 0.2 percent to its highest close since May 2012. Shares have rallied after Kuwait indicated it would restart long-delayed infrastructure projects.
A government official said on Thursday it plans to choose a winning bid in the first quarter of this year for a KD900m ($3.2bn) new airport, which is key to the country’s economic development plan.
In Oman, the benchmark climbed 0.2 percent, taking its year-to-date gains to 3.5 percent. Bank Sohar and Oman Investment and Finance added 0.5 and 2.3 percent respectively.
Bahrain’s index reversed the previous session’s loss, gaining 0.7 percent, although the number of shares changing hands was at its lowest level in 2013.
Ithmaar Bank jumped 9.1 percent. Reuters
