Dubai’s benchmark stock index extended its winning streak for a sixth day after Emaar Properties PJSC’s profit beat estimates and Arabtec Holding said it planned an acquisition.
The DFM General Index gained 2.3 percent to 5,134.95 at the close in the emirate, bringing the six-day advance to 9.6 percent. The measure had soared as much as 3.5 percent. Emaar, the developer of the world’s tallest tower, rose 1.9 percent and Arabtec, the biggest traded construction contractor in the United Arab Emirates, jumped 11 percent to a record.
Dubai’s gauge is up 52 percent this year, making it the best performer among more than 90 measures tracked globally by Bloomberg. Stocks in the emirate are benefiting from a real estate-led economic recovery after prices for mid-range apartments rose 43 percent last year, according to Cluttons LLC data on Bloomberg. The emirate is also set to gain from about $8 billion of infrastructure spending planned as it prepares to host World Expo 2020.
“We have positive news in the market, positive earnings surprises,” said Sebastien Henin, who oversees $90 million as head of asset management at The National Investor in Abu Dhabi. “The market is going through a crazy period. From a technical perspective, the market is a bit stretched but I don’t think investors will stop investing.”
Emaar advanced to 10.95 dirhams, the highest since July 2008. The company said yesterday first-quarter net income climbed 55 percent to 863 million dirhams ($235 million) compared with the average estimate of four analysts on Bloomberg of 739 million dirhams.
Arabtec soared to 8.71 dirhams after it announced plans to buy a European company and said it may tap the bond market to pay for the deal.