United Arab Emirates shares gained, sending Dubai’s benchmark stock index to the highest in more than a week, after earnings at the Persian Gulf country’s real estate companies beat estimates.
Emaar Properties PJSC rose for a second day after the developer of the world’s tallest skyscraper said quarterly profit more than doubled. In Abu Dhabi, Sorouh Real Estate PJSC rallied 1.9 percent after net income climbed 34 percent. The DFM General Index increased 0.3 percent to 1,542.64, the highest close since July 18. The measure rallied 6.3 percent in July, the first monthly gain since February. Abu Dhabi’s gauge rose 0.5 percent and Qatar’s QE Index advanced 0.3 percent.
Gains are being driven “by second-quarter earnings, which is the local catalyst, and then you have that combined with some improvement in the global markets,” said Chahir Hosni, equity sales manager at EFG-Hermes Holding SAE in Dubai.
Emaar, also the owner of the world’s largest shopping mall in Dubai and the stock with the biggest weighting on Dubai’s index, said July 29 net income climbed to 614 million dirhams ($167 million), beating estimates. The shares increased 0.9 percent to 3.4 dirhams, extending their gain this year to 32 percent, compared with a 14 percent advance for Dubai’s DFM General Index.
Sorouh, the developer that’s in merger talks with Aldar Properties PJSC, surged to 1.05 dirhams, the highest close since June 11. Net income rose to 148.2 million dirhams from 110 million dirhams a year earlier, also beating estimates.
Asian stocks advanced today, with the MSCI Asia Pacific Index gaining 1.2 percent at 4:49 p.m. in Dubai, on speculation the Federal Reserve and the European Central Bank may signal their readiness to stimulate growth amid signs of a global economic slowdown, boosting the earnings outlook for exporters. The MSCI Emerging Markets Index increased 1 percent.
About 91 million shares traded in Dubai today, compared with the 12-month daily average of 139 million shares.
The Bloomberg GCC 200 Index rose 0.5 percent and Saudi Arabia’s Tadawul All Share Index gained 0.8 percent. Bahrain’s BB All Share Index added 0.1 percent, while Kuwait’s Stock Exchange Price Index and Oman’s MSM30 Index slipped 0.1 percent.