Dubai Shares Rally to 3-Month High on U.S. Jobs as Egypt Gains
Dubai stocks rose to the highest level since May after companies in the United Arab Emirates reported results that beat estimates and U.S. employment data boosted global stocks and oil prices.
Emaar Properties PJSC (EMAAR), developer of the world’s tallest skyscraper, increased to the highest in more than a year. Air Arabia PJSC (AIRARABI), which may this week post an increase in profit, rallied 0.9 percent. The DFM General Index (DFMGI) rose 1.6 percent to 1,575.32 at the close in the emirate, the highest since May 3. Abu Dhabi’s gauge advanced 0.1 percent. About 117 million shares were traded in Dubai, compared with the 12-month daily average of 140 million shares.
“Investors are encouraged by the earnings reported by real estate developers and banks,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “Also, the positive momentum in international equity markets is helping boost confidence.”
Dubai, the second-largest of seven emirates that make up the U.A.E., relies on trade, tourism and property for growth. U.S. stocks capped four weeks of gains, giving the Dow Jones Industrial Average the longest rally since October, after a Labor Department report showed American payrolls climbed more than forecast.
Oil surged 4.9 percent on Aug. 3 to $91.4 a barrel. Gulf Arab oil exporters, including the U.A.E. and Saudi Arabia (SABIC), supply about a fifth of the world’s oil.
In Egypt, the EGX30 Index (EGX30) rose 0.9 percent to 5,034.77, the highest level since May 14. The North African nation will resume talks with the International Monetary Fund for a $3.2 billion loan when Ramadan, the Islamic fasting month, concludes later in August, Finance Minister Momtaz El-Saieed said.
Israel’s benchmark TA-25 Index (TA-25) rose 0.5 percent, the most since July 30. The yield on the 5.5 percent benchmark Mimshal Shiklit government bonds due January 2022 rose four basis points, or 0.04 percentage point, to 3.95 percent.
Emaar rose 1.2 percent to 3.46 dirhams, the highest close since April 2011. The company with the strongest weighting on Dubai’s index said last month second-quarter profit more than doubled to 614 million dirhams ($167 million) as the emirate’s retail and tourism industries extended their best year since the 2008 property crash. The mean estimate of five analysts was for a profit of 545 million dirhams, according to data compiled by Bloomberg.
Air Arabia, the Middle East’s biggest discount airline, gained to 64.5 fils, the highest close since April 18. The company this week may post a 5 percent increase in quarterly profit to 52 million dirhams, according to the average estimate of Securities & Investment Co. and EFG-Hermes Holding SAE, data compiled by Bloomberg show.
Elsewhere in the Persian Gulf, Kuwait’s benchmark stock index rose 0.2 percent and Qatar’s QE Index gained 0.1 percent. Saudi Arabia’s benchmark stock index decreased 0.1 percent, Bahrain’s gauge slipped 0.2 percent and Oman’s MSM30 Index (MSM30) fell 0.5 percent. The Bloomberg GCC 200 Index (BGCC200) closed unchanged.
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