Dubai’s shares rose for the second day as Emaar Properties PJSC (EMAAR) surged to the highest level since August on investor bets the emirate will win its bid to host Expo 2020.
The DFM General Index (DFMGI) climbed 0.5 percent to 2,898.97 at the close in the sheikhdom, bringing the two-day advance to 1.1 percent. Emaar, developer of the world’s tallest skyscraper with the biggest weighting on the benchmark, rallied 1.29 percent to 6.30 dirhams. Dubai Investments PJSC, (DIC) which holds stakes in more than 40 businesses, soared 3.1 percent to five-year-high 2.30 dirhams.
The Middle East business hub is competing with Izmir in Turkey, Sao Paolo in Brazil and Ekaterinburg in Russia for the World Expo, with the result being announced today. Securing the bid may spur construction projects worth as much as $8.1 billion, Sheikh Ahmed bin Saeed Al Maktoum, head of Dubai’s Supreme Fiscal Committee, said Nov. 17. A win could boost The city’s economic growth to an average 6.4 percent over the next three years, Barclays Plc said in a research note yesterday.
“The gains are linked mainly to anticipation of the Expo decision,” Montasser Khelifi, a Dubai-based senior manager at Quantum Investment Bank Ltd., said by phone today. “The real estate companies should be able to benefit from the win, so that’s why investors are interested.”
Emaar shares have gained 3.6 percent this month, compared with a drop of less than 1 percent for the Dubai gauge. Volume was more than double the stock’s three-month daily average, with about 39 million securities traded today, data compiled by Bloomberg show.
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