Dubai Stocks Gain Most in a Week on Emaar Bets; Qatar Declines

Shares in Dubai ended three-days of declines amid investor bets second quarter earnings at Emaar (EMAAR) Properties PJSC, the developer of the world’s tallest tower, will exceed expectations. Stocks in Qatar fell.

The DFM General Index (DFMGI) advanced 1.9 percent to 4,739.54 at the close in the emirate, the highest level since July 17. Emaar, the stock with the biggest weighting on the gauge, climbed 1.9 percent. Dubai Islamic Bank PJSC., the largest Shariah-compliant lender in the United Arab Emirates, added 4.4 percent. Qatar’s QE Index dropped 0.6 percent to 12,877.31.

Emaar is forecast to report second-quarter net income of 936 million dirhams ($255 million), up from 675 million dirhams a year earlier, according to the median estimate of four analysts surveyed by Bloomberg. The company doesn’t say when it will release earnings. Nakheel PJSC, developer of the man-made islands off Dubai’s coast, said on July 9 first-half profit surged 54 percent to 1.85 billion dirhams.

“Emaar has surprised the market with earnings higher than estimates over the past four quarters,” Ramez Merhi, director of asset management at Dubai-based Al Masah Capital, which manages $545 million, said by e-mail. “Using Nakheel as an indicator, since they published solid figures for Q2, I would expect Emaar numbers to be good.”

Dubai-based property and construction companies are benefiting from a real estate-led economic recovery in the emirate, where prices for mid-range apartments rose 43 percent last year, and another 5.4 percent this year through June, according to Cluttons LLC data on Bloomberg.

Emaar shares rose to 9.70 dirhams, the biggest advance in a week. DIB gained to 7.53 dirhams, the strongest increase since July 2.

Arabtec Recovers

Arabtec Holding Co. (ARTC) climbed 1.3 percent, ending a five-day losing streak, after the biggest publicly-traded construction company in the U.A.E. reported an 11 percent increase in second-quarter profit to 103 million dirhams. The shares fell as much as 6.5 percent earlier as the profit missed the 135 million-dirham mean estimate of three analysts surveyed by Bloomberg.

Abu Dhabi’s benchmark ADX General Index (ADSMI) added 1.1 percent to 5,005.21. Aldar Properties PJSC, the largest publicly-traded developer in the emirate, jumped 2.6 percent to 3.59 dirhams. First Gulf Bank PJSC climbed 1.4 percent to 18 dirhams, the biggest advance since July 21.

In Egypt, the benchmark EGX 30 Index (CASE) dropped 0.1 percent to 8,735.24 before a three-day holiday starting tomorrow. The bourse said July 21 it will extend the four-hour trading day by 30 minutes after the holiday and will double the stock price movement limit starting Aug. 7.

Israel Declines

Bahrain’s BB All Share Index dropped 0.4 percent. Stock markets in Saudi Arabia, Oman and Kuwait are closed all week for a religious holiday.

In Israel, the benchmark TA-25 Index (TA-25) declined 0.2 percent to 1,395.45, as Hamas militants agreed to resume a truce with Israel in the Gaza Strip. The yield on the country’s benchmark 10-year bond sank four basis points, or 0.04 of a percentage point, to 2.72 percent.

To contact the reporter on this story: Sarmad Khan in Dubai at skhan170@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net James Doran

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