Oct. 7 (Bloomberg) -- Dubai’s shares advanced to the highest level in more than five months after companies including Emaar Properties PJSC announced overseas projects and as investors speculate quarterly earnings may rise.
Emaar, developer of the world’s tallest skyscraper, climbed to the highest level since December 2010. Arabtec Holding Co., the United Arab Emirates’ biggest construction company, rose 0.4 percent. The DFM General Index added 1 percent to 1,644.28 at the close in Dubai, the highest level since April 26. The gauge rallied 8.7 percent in the third quarter. Qatar’s QE Index added 0.3 percent and the Bloomberg GCC 200 Index of the region’s top 200 equities slipped 0.2 percent.
Companies in Saudi Arabia and Qatar kicked off the third-quarter earnings season. Yamamah Saudi Cement Co., a maker of building materials, estimated profit rose 5.4 percent. Emaar, which has the biggest weighting on Dubai’s index, may say this month profit climbed 18 percent, according to the mean estimate of five analysts compiled by Bloomberg.
“Positive sentiment continues from last week as investors are optimistic about third-quarter earnings,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “The latest news from some companies such as Emaar and Arabtec lured investors back into these stocks.”
Emaar, which rose 6 percent last week, gained 1.9 percent to 3.76 dirhams. The company signed an agreement with Iraq to develop real estate projects as the country tries to meet demand for 670,000 new homes. The developer got a proposal to form an Iraq unit, one third of which would be sold in an initial public offering, Al Bayan reported today. Emaar is expanding across the Middle East as an oversupply of properties in Dubai continues to subdue its home market.
Arabtec climbed the most in almost a week to 2.55 dirhams. The builder’s last week said it won a 453 million-dirham contract from OAO Gazprom to build Europe’s tallest office tower in St. Petersburg, helping push the shares 4.1 percent higher. Yamamah shares declined 1.1 percent today to 44.4 riyals after rising 0.9 percent last week.
Kuwait’s Stock Exchange Price Index advanced 0.2 percent. Kuwaiti Emir Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah issued a decree dissolving parliament, state television reported today. The move came after the Constitutional Court ruled last month against a government bid to amend the election law.
Oman’s MSM30 Index gained 0.1 percent. Abu Dhabi’s ADX General Index fell 0.1 percent while Bahrain’s BB All Share Index declined 0.7 percent. Saudi Arabia’s Tadawul All Share Index retreated 0.4 percent.
Markets in Israel and Egypt are closed for holidays.
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