DUBAI: Bullish sentiment towards UAE equities propelled Dubai’s bourse to a two-year closing high yesterday, driven by bets on stronger dividends and 2012 profit, while Egypt’s market snapped a seven-session winning streak.
“The market performance has been impressive and lots of money that has been parked on the side is now coming into the market,” said Ali Adou, portfolio manager at The National Investor.
Heavyweight Emirates NBD rose 1.9 percent, its sixth-straight advance, while builder Arabtec gained 1.5 percent.
National Central Cooling (Tabreed) leapt 9.5 percent, having rallied almost 15 percent in the last session. Traders said the move is speculative and lacks a fundamental reason, with Tabreed among the most liquid stocks on the bourse.
Dubai’s index rose 0.6 percent to close at 1,756 points, its highest finish since November 2010.
The market has yet to break the intraday high of 1,778 points hit on March 2012. Dubai’s benchmark rose 4.5 percent this week.
“If Dubai can close above the next resistance zone — 1778.25/1791 — it should then get up to the 1,885 area,” said Bruce Powers, head of research and analysis at Trust Securities.
Abu Dhabi’s market advanced 0.4 percent to its highest closing level since July 2011, taking gains for the week to 1.7 percent.
Dana Gas was the most traded stock, rising 6.1 percent after its largest shareholder said it supported the firm’s debt restructuring plan.
Aldar Properties and Sorouh Real Estate advanced 5.3 and 5.4 percent respectively. Sources said earlier the two firms have agreed on initial merger terms.
In Egypt, the benchmark index dropped 1.9 percent, falling from Wednesday’s 10-week high as non-Arab foreigners sold shares.
The market rallied to 5,969 points on September 26, which remains its highest close since January 2011.
Heavyweight Commercial International Bank shed 2.4 percent, while Palm Hills Development, the most traded stock on the day, fell 3.4 percent.
Non-Arab foreigners were net buyers in the recent rally but sold to Egyptian buyers yesterday, bourse data showed.
The sub-governor of Egypt’s central bank yesterday said the $2bn loan that Qatar pledged to Cairo this week had arrived at the bank in December.
This is likely to weigh on investor confidence as some had hoped the funds would help the country with its currency crisis until it seals a deal with the International Monetary Fund for a $4.8bn loan.
Reuters
