Jan. 27 (Bloomberg) -- Dubai’s stocks rose to a three-year high as Emaar Properties PJSC said apartments offered at a new development sold out in a day, fueling investor optimism for further recovery in the emirate’s property industry.
Emaar, developer of the world’s tallest tower, surged to the highest level since October 2009. Deyaar Development PJSC advanced 1.4 percent. The benchmark DFM General Index jumped 1.5 percent to 1,819.01, the strongest level since April 2010, at the close in the emirate. About 343 million shares changed hands in Dubai today, almost double the 12-month daily average.
Emaar said The Address Residence Fountain Views, which will comprise 280 apartments, sold all units available at a first offering. The luxury hotel project, to be located in central Dubai, was announced last week amid increasing demand for high-end properties as the local property market recovers after a 2008 crash sent home prices tumbling more than 65 percent. The emirate’s economy may have expanded 5 percent in 2012, the fastest pace since 2007, according to government forecasts.
“The sale proved that sentiment in Dubai is very positive, as reflected in the real estate sector,” said Nabil Rantisi, managing director of brokerage at Abu Dhabi-based Menacorp. “The sale will also reflect on the bottom line of Emaar.”
Emaar, whose shares surged 3.6 percent to 4.64 dirhams today, may post a 16 percent advance in 2012 profit, according to the average estimate of 11 analysts compiled by Bloomberg. The stock surged 46 percent last year, outpacing the Dubai gauge’s 20 percent gain.
Dubai-based Deyaar’s shares advanced to 37.5 fils, the highest close since Jan. 17. The company will probably post a 43 percent advance in 2012 profit, according to a Securities & Investment Co. estimate compiled by Bloomberg.
The DFM General Index’s 14-day relative strength index rose to 80 today. A reading above 70 indicates to some analysts that a security or index is poised to decline. The measure was the Gulf Cooperation Council’s best performer last year.
In North Africa, 21 stocks on Egypt’s benchmark EGX 30 Index decreased, while eight rose and one was unchanged. The gauge was little changed following a drop of as much as 1.9 percent after dozens died in protests marking the second anniversary of the uprising that toppled Hosni Mubarak.
Egypt, which reached an initial agreement with the International Monetary Fund for a $4.8 billion loan in November, has seen political unrest since then delay final approval by the lender’s board. An IMF team is to return to Cairo within two weeks, Prime Minister Hisham Qandil said Jan. 24.
“We should be heading north again as soon as an IMF deal is finalized and as we move closer to a resolution to the political conflict,” Tamer Nigm, head of sales trading at Cairo-based Watheeqa Securities, said by phone.
Elsewhere in the Middle East, Abu Dhabi’s ADX General Index gained 0.6 percent, Kuwait’s gauge advanced 0.1 percent and Bahrain’s measure increased 0.3 percent. Oman’s MSM30 Index, Saudi Arabia’s Tadawul All Share Index and the Bloomberg GCC 200 Index of the biggest companies in the Gulf were little changed. Qatar’s QE Index decreased 0.6 percent.
Israel’s TA-25 Index dropped 0.3 percent at the 4:30 p.m. close in Tel Aviv. The yield on the government’s benchmark 4.25 percent bonds maturing March 2023 rose three basis points, or 0.03 percentage point, to 3.99 percent.
To contact the editor responsible for this story: Claudia Maedler at email@example.com