July 17 (Bloomberg) -- Dubai’s benchmark stock index gained to the highest level in more than two months as a rally in property developer Emaar Properties PJSC this week prompted investors to buy construction and real-estate companies.
Arabtec Holding Co., the biggest publicly traded construction company in the United Arab Emirates, rose to the highest since May 9. Drake & Scull International PJSC advanced for a second day, while Emaar increased as much as 1.9 percent. The DFM General Index climbed 0.9 percent to 1,529.42, the highest since May 8, at the close in the emirate. The Bloomberg GCC 200 Index lost 0.2 percent.
Emaar’s performance “is giving a good momentum,” said Tariq Qaqish, Dubai-based deputy head of asset management at Al Mal Capital. “Short-term investors are rotating to other stocks such as Arabtec.”
Emaar, the developer of the world’s tallest skyscraper in Dubai and the company with the heaviest weighting on the index, has risen 5.5 percent this week amid speculation second-quarter earnings may beat estimates. Net income will more than double to 551 million dirhams ($150 million), according to the mean estimate of four analysts on Bloomberg. The shares have gained 27 percent this year, more than double the benchmark index.
Arabtec’s second-quarter profit may also more than double to 73 million dirhams, according to the mean estimate of six analysts on Bloomberg. Arabtec rose 1 percent to 2.97 dirhams. Drake & Scull advanced 3 percent to 82.5 fils, the highest since May 13. There are 100 fils to the dirham. Emaar advanced 1.2 percent to 3.27 dirhams, the highest since April 30.
The three companies were the most traded stocks on Dubai’s gauge, according to data compiled by Bloomberg. About 144 million shares were traded in Dubai today, compared with a 12-month daily average of about 138 million shares, the data show.
Abu Dhabi’s ADX General Index and Qatar’s QE Index climbed 0.2 percent, respectively. Oman’s MSM30 Index and Bahrain’s measure rose 0.1 percent. Kuwait’s gauge fell less than 0.1 percent, while Saudi Arabia’s Tadawul All Share Index retreated 0.8 percent.
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