Dubai’s benchmark stock index climbed to the highest in more than two months amid investor speculation Emaar Properties PJSC’s second-quarter earnings may beat estimates.
Emaar, the developer of the world’s tallest skyscraper in Dubai, advanced to the highest since May 1. Deyaar Development PJSC, a Dubai-based property developer, closed at the highest since June 13. The benchmark DFM General Index climbed 0.9 percent to 1,516.53, the highest level since May 9, at the 2 p.m. close in the emirate. Oman’s measure gained 0.6 percent after BankMuscat SAOG, the country’s biggest bank by assets, reported a 20 percent increase in first-half profit.
The gain in Dubai is “driven by renewed buying interest in Emaar on anticipation of better second-quarter numbers,” said Julian Bruce, the Dubai-based director of institutional sales trading at EFG-Hermes Holding SAE.
Emaar’s second-quarter profit will more than double to 551 million dirhams ($150 million), according to the mean estimate of four analysts on Bloomberg. Emaar, which has the heaviest weighting on the benchmark index, is scheduled to release financial results later this month. The stock has climbed 26 percent this year, more than double the DFM General Index.
Emaar rose 2.5 percent to 3.23 dirhams. Deyaar increased 2.7 percent to 31 fils. There are 100 fils to the dirham.
BankMuscat rallied 2.9 percent, the most since March 28, to 0.526 rial. Second-quarter profit rose to 35 million rials ($91 million) from 29.4 million rials a year earlier, beating analysts’ estimates, according to Bloomberg calculations based on first half earnings. The mean estimate of six analysts was for a profit of 33.3 million rials, according to data compiled by Bloomberg.
The Bloomberg GCC 200 Index rose 0.1 percent, while Saudi Arabia’s Tadawul All Share Index lost 0.3 percent. Abu Dhabi’s ADX General Index fell 0.2 percent and Kuwait’s gauge gained less than 0.1 percent. Qatar’s QE Index advanced 0.1 percent and Bahrain’s measure rose 0.2 percent.