Dubai Stocks Advance to 3-Month High on Speculation of Post Holiday Rally

Dubai shares rose to the highest in more than three months, leading gains in Gulf markets, as investors bought shares before this week’s Muslim holiday on speculation stocks will rally after Ramadan ends.

Emaar Properties PJSC, developer of the world’s tallest skyscraper in Dubai, increased 1.9 percent and Emirates NBD, the United Arab Emirates’ largest bank by assets, jumped to the highest since June. The DFM General Index rose 1.5 percent to 1,592.24, the highest since May 30, at the 2 p.m. close in Dubai. The Bloomberg GCC 200 Index gained 0.3 percent.

“It’s the last week of Ramadan effect, where you have investors picking up stocks in anticipation of a post-Ramadan rally,” said Hassan El Salah, deputy head of institutional equities at Al Ramz Securities LLC, an Abu Dhabi-based brokerage. “Historically, the market has rallied the last two weeks 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. Dubai’s benchmark surged 11 percent during the last two weeks of Ramadan last year and Abu Dhabi’s index jumped 7.3 percent.

About 156 million shares traded in Dubai today, almost triple the 1-month daily average of 59 million. U.A.E. markets will close from tomorrow and may reopen Sept. 12 or Sept. 13. Kuwait’s stock exchange will shut Sept. 9 to Sept. 12 for the holiday. Oman will close from Sept. 12 through Sept. 14. Saudi Arabia’s market is already closed.

Studying Investments

Emaar increased to 3.68 dirhams, the highest since May 23 and Emirates NBD advanced 2.8 percent to 2.62 dirhams, the highest since June 24.

In Abu Dhabi, Emirates Telecommunications Corp., the U.A.E.’s biggest phone company known as Etisalat, gained as much as 1 percent to 10.15 dirhams and closed at 10.10 dirhams. The company said yesterday it’s studying investment opportunities in India, including in Idea Cellular Ltd.

The ADX General Index climbed 0.6 percent, the most since July 22. Kuwait’s gauge rose 0.4 percent and Oman’s MSM30 Index increased 0.2 percent. Bahrain’s BHSE All Share Index increased 0.6 percent, while Qatar’s QE Index dropped 0.2 percent.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

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