Breaking News

Home Depot Says 56 Million Payment Cards at Risk From Hack; Says Malware Used In Recent Breach Now Eliminated From U.S. and Canadian Networks
Tweet TWEET

Dubai Stocks Erase June Nightmare With Best Month Since 2007

Dubai shares gained the most in almost seven years in July, helping claw back some of the losses sustained in a bear market that wiped a quarter off the benchmark index.

Real estate-related companies led the rally. Arabtec Holding Co. (ARTC), which spurred the DFM General Index’s collapse in May and June, advanced 4.9 percent today to bring monthly gains to 63 percent. Emaar Properties PJSC, the company with the biggest weighting on the gauge, added 0.7 percent. Union Properties PJSC climbed 4.4 percent.

Dubai’s measure gained 2 percent to 4,833.24, bringing the monthly advance to 23 percent, the strongest since October 2007, according to data compiled by Bloomberg. Nine of the regularly traded stocks in the 30-member index traded above their 50-day moving average price through yesterday, up from zero at the start of July.

“After aggressive dips you see aggressive rebounds,” Ahmed Shehada, head of advisory and institutions at NBAD Securities LLC, the United Arab Emirates’ fourth-biggest brokerage by trading volume, said by telephone. “When the index dipped below 4,000, investors saw value across the board. A lot of institutions have been buying in.”

Bear Market

Dubai’s share gauge entered a bear market June 23 after warnings from the U.A.E.’s central bank that the country’s property market may be overheating. Management and shareholder changes at Arabtec stoked investor concern the nation’s biggest listed construction company was losing government support, fueling declines. Arabtec shares retreated 61 percent in June.

“That side-tracked investors from the fundamentals,” Shehada said. “First-half earnings reports across the board are looking strong.”

Union Properties advanced to 2.16 dirhams after it said July 24 first-half profit surged to 707 million dirhams ($192 million) from 135 million dirhams in the same period a year earlier. Emaar (EMAAR) rose to 9.77 dirhams. The developer of the world’s tallest tower will report second-quarter net income of 936 million dirhams, up from 675 million dirhams a year earlier, according to the median estimate of four analysts surveyed by Bloomberg.

Arabtec climbed to 4.25 dirhams. The company said July 27 profit for the second quarter climbed 11 percent to 103 million dirhams.

To contact the reporter on this story: James Doran in Dubai at jdoran24@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.