Mideast Shares Advance on Signs of Possible U.S. Debt Deal, Paced by Emaar
Dubai Shares Advance Most in a Month
Charles Crowell/Bloomberg
Emaar Properties, builder of the Burj Khalifa, climbed to the highest since Aug. 29.
Emaar Properties, builder of the Burj Khalifa, climbed to the highest since Aug. 29. Photographer: Charles Crowell/Bloomberg
Middle East shares rose, sending Dubai’s measure up the most in two weeks, as U.S. politicians began a fresh attempt to reach an agreement on raising the country’s debt limit two days before a default deadline.
Emaar Properties PJSC (EMAAR), the developer of the world’s tallest skyscraper, gained 2.1 percent and Dubai Islamic Bank PJSC (DIB) rallied the most in three months as second-quarter profit rose 10 percent. The DFM General Index (DFMGI) climbed 0.8 percent, the most since July 13, to 1,517.58 at the 2 p.m. close in Dubai. The measure was little changed in July. The Bloomberg GCC 200 Index (BGCC200) rose 0.3 percent after slipping as much as 0.3 percent earlier. Egypt’s EGX 30 Index (EGX30) also gained 0.3 percent and Israel’s TA-25 index fell 0.7 percent.
Reports that “there is a preliminary agreement on a deal between President Barack Obama and the Republicans” helped push up stocks, said Samer Darwiche, a financial analyst at Gulfmena Investments in Dubai.
The White House and congressional Republicans have sketched out the contours of an agreement to increase the nation’s $14.3 trillion debt ceiling that would raise borrowing authority through the next presidential election, a person familiar with the talks said late last night. U.S. President Barack Obama and congressional leaders yesterday kick-started the new push to prevent a U.S. government default on its debt.
Israel Declines
Emaar advanced the most since July 3 to 2.88 dirhams and Dubai Islamic jumped 3 percent, the most since April 20, to 2.06 dirhams. Net income at the United Arab Emirates’ biggest lender complying with Shariah rules increased to 331 million dirhams ($90 million).
Qatar’s QE Index (DSM) rose 0.3 percent and Saudi Arabia’s Tadawul All Share Index (SASEIDX) gained 0.6 percent after tumbling 1.4 percent yesterday. Kuwait’s SE Price Index slipped 0.1 percent and Bahrain’s BB All Share Index fell 0.5 percent, while Abu Dhabi’s ADX General Index (ADSMI) decreased 0.3 percent. Oman’s MSM 30 Index dropped 0.7 percent.
In Israel, the TA-25 Index declined to 1,224.14, the lowest since June 30, amid protests over rising housing and living costs.
The director general of Israel’s Finance Ministry Haim Shani resigned after a series of disagreements with Finance Minister Yuval Steinitz as the government grapples with growing protests. Prime Minister Benjamin Netanyahu pledged on July 26 to raise the supply of housing to offset increasing property prices.
“Local protests are reaching a new high with the resignation of the finance ministry director general,” said Saar Golan, sales trader at Clal Finance Brokerage Ltd. in Tel Aviv. “The government is under a lot of pressure to do something.” The debt impasse in the U.S. is also hurting stocks, he said
The yield on the 5 percent Mimshal Shiklit government bonds due January 2020 rose three basis points, or 0.03 percentage point, to 5.03 percent.
-- With assistance from Susan Lerner in Jerusalem. Editors: Claudia Maedler, Dan Weeks
To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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