Abu Dhabi shares extended a 15-week advance, spurred by an economic recovery in the emirate as investors judged the political turmoil in Ukraine is unlikely to affect Middle East markets. Dubai’s benchmark declined.
The ADX General Index climbed 0.3 percent to 4,974.24 at 12:53 p.m. in Abu Dhabi. Dana Gas PJSC rose as it upgraded its Wastani plant in Egypt in an effort to boost production by 25 percent. Dubai’s benchmark, the third-best performing index globally this year among more than 90 tracked by Bloomberg, fell 0.4 percent.
Abu Dhabi’s gauge surged more than 60 percent in the last 12 months amid a recovery in the United Arab Emirates’ financial and property markets. The emirate’s economy is expected to grow at an average 5.7 percent a year through 2016, according to the economic development department. That compares with estimated global growth of 2.9 percent, according to data compiled by Bloomberg.
“Positive growth in residential real estate and buoyant tourism and hospitality industries have translated into renewed investor interest on the ADX,” Nayal Khan, head of institutional sales and trading at Naeem Holding in Dubai, said by e-mail today. While political unrest in the Ukraine will affect international markets, U.A.E. bourses are isolated from the turmoil, he said.
Ukraine told Russia that a military intervention would be an act of war following a vote in Moscow to give President Vladimir Putin the right to send in troops. Pro-Russian forces have seized control of Crimea in response to last week’s overthrow of President Viktor Yanukovych.
Kuwait shares dropped 0.8 percent and Bahrain’s measure lost 0.3 percent. Saudi Arabi’s Tadawul All Share Index climbed 0.3 percent and Muscat’s gauge rose 0.1 percent. Qatar’s exchange is closed for holiday.
In Israel, the TA-25 Index advanced less than 0.1 percent, while the yield on the government’s debt maturing in March 2023 declined one basis point, or 0.01 percentage point, to 3.25 percent