Dubai’s shares rose to the highest level in more than three years, spurred by investor bets on first-quarter results from banks and telecommunication companies.
The Dubai Financial Market General Index advanced 1.8 percent to 2,021.15, the highest close since November 2009. The volume of shares traded reached 281 million shares, or about 30 percent more than the three-month daily average. Emaar Properties PJSC (EMAAR), the emirate’s biggest listed real-estate developer, rose to the highest in almost two weeks, while Air Arabia PJSC (AIRARABI), the region’s biggest budget airline, closed at the highest level since April 2010.
Dubai’s economy is recovering from a property crash and the impact of the global credit crisis helped by a rebound in tourism, trade and transport. Home prices and rents rose for the 16th month in March “highlighting the return of investor confidence in Dubai,” Deutsche Bank AG said in a report yesterday. Dubai Islamic Bank PJSC (DIB), the only bank in the emirate to report results, last week posted a 17 percent gain in quarterly profit.
“Liquidity is high and investors are optimistic about the first-quarter results,” Nabil Farhat, a partner at Abu Dhabi- based Al Fajer Securities, said in an e-mail. “We expect good results” from banks and telecommunication companies, he said.
Emirates NBD PJSC (EMIRATES), Dubai’s biggest bank, will report a 7 percent increase in quarterly profit to 686 million dirhams ($187 million) on April 25, according to the mean estimate of four analysts compiled by Bloomberg. Emirates Integrated Telecommunications Co. (DU), known as Du, will post a 32 percent jump in quarterly profit, according to the mean estimate of five analysts on Bloomberg.
Shares of Emirates NBD climbed 2.5 percent to 4.51 percent, the highest since June 2011. Du gained 2.1 percent.
Air Arabia jumped 4.1 percent to 0.955 dirham. The carrier said April 20 the number of passengers it flew in the first quarter surged 18% from a year ago to a record 1.45 million.
Emaar advanced 1.3 percent to 5.35 dirhams and Dubai Islamic Bank rose 2 percent.
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