Dubai Stocks Rise to Two-Month High on Global Growth Optimism, Eid Holiday
Dubai shares rose to the highest in more than two months after U.S. jobs data and a U.K. manufacturing report bolstered confidence in global economic growth and as investors bought shares before the Muslim Eid celebration.
Emaar Properties PJSC, developer of the world’s tallest skyscraper in Dubai, advanced to the highest since May and Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, surged 5.9 percent. The DFM General Index jumped 1.4 percent to 1,559.37, the highest intraday level since June 22, at 12:27 p.m. in Dubai. The Bloomberg GCC 200 Index of Gulf stocks increased 0.2 percent.
“We were expecting the rally from the positive reaction we saw in the U.S. on last week’s data and during the last week of Ramadan,” said Saad al-Chalabi, institutional trader at Al Ramz Securities in Abu Dhabi. “Emaar broke through major technical levels yesterday, luring investors and fund managers back to the market.”
Global shares rallied after companies in the U.S. added more jobs than forecast in August, easing concern the world’s largest economy is sliding back into recession. U.S. private payrolls climbed 67,000 in August, topping the 40,000 median estimate in a Bloomberg survey of economists, government data showed on Sept. 3. Today’s Engineering Employers Federation data showed U.K. factory production grew at a record pace in the third quarter on surging export demand.
The MSCI World Index climbed for a fourth day, advancing 0.4 percent, while Europe’s Stoxx 600 Index increased as much as 0.5 percent, gaining for the fourth time in five days.
End of Ramadan
The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, began Aug. 11 and ends this week with the celebration of Eid. About 153 million shares traded in Dubai so far today, triple the one-month daily average of 52 million.
Emaar shares advanced above the 200-day moving average of 3.46 dirhams yesterday, signaling the start of a rally, al- Chalabi said. The company with the heaviest weighting on Dubai’s index rose 3.4 percent to 3.62 dirhams. The Dubai Financial Market gained to 1.61 dirhams, the highest since June 21.
In Bahrain, Islamic lender Al-Salam Bank jumped 1.4 percent, the most since July 12, to 0.073 dinar. The bank provided 38 million pounds ($59 million) in a Shariah-compliant mezzanine facility to refinance a commercial property in Canary Wharf, London.
Saudi Arabia’s Tadawul All Share Index increased 0.7 percent. Qatar’s QE Index retreated 0.5 percent after a seven- day winning streak. Abu Dhabi’s ADX General Index rose 0.3 percent, while Oman’s MSM30 Index gained less than 0.1 percent. Kuwait’s gauge was little changed and Bahrain’s measure advanced 0.6 percent.