Dubai reaches 5-month closing high

STOCK WATCH: Shuaa has climbed 45 percent in the past three sessions since saying it was considering buying back a 1.5bn dirham ($408.5m) convertible bond.(Getty Images)

Emirates NBD climbed 4.1 percent after the lender said it was in final talks to raise extra capital, helping the Dubai index DFM to reach its highest close of 2009.

The benchmark rose 1.6 percent to 1,792 points, its highest finish since Dec 21 last year. Emaar Properties advanced 2.6 percent.

"The UAE markets will continue their uptrend," says Chamel Sahmy, Beltone Financial regional senior sales trader.

"From a technical view, they've broken resistance levels on decent volumes and investors are targeting stocks that were lagging the uptrend. Next week we should see Dubai challenge 1,800 points and Abu Dhabi can reach 2,700."

The Abu Dhabi index ADI also ended higher, rising 0.6 percent to 2,659 points. Sorouh Real Estate climbed 6.2 percent.

Qatar Commercial Bank dropped 3.8 percent as most Doha stocks fall, matching declines in world markets.

The Qatar benchmark QSI fell 1.1 percent to 6,590 points, its fourth decline in five sessions since hitting a 20-week high on May 21.

Qatar National Bank lost 2.9 percent and most sectors retreat as losers outnumbers gainers 15 to two.

Asian shares fell on Thursday from seven-month highs.

Kuwait's index KWSE recovered most of its early losses to end higher, climbing 0.2 percent to 8,019 points.

National Bank of Kuwait and Kuwait Finance House fell 1.6 and 3.1 percent respectively. Five of the 10 largest stocks declined, with five unchanged.

The Bahrain measure BAX fell for a third session in four, slipping 0.2 percent to 1,610 points.

Bank Muscat plunged 4.6 percent and accounted for a third of all trading on Oman's index MSI, which ended lower for the second session in three as volumes slump.

Cement stocks also fell on concerns of oversupply in the sector as construction projects are scaled back across the Gulf. Oman Cement Co fell two percent and Raysut Cement lost 1.3 percent.

"The cement sector was reaching the higher end of valuations and it's a cyclical industry, so investors are selling now in the expectation of being able to buy back at lower levels," says Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat.

The benchmark dropped 0.9 percent to 5,459 points as volumes slump to a four-week low. Losers outnumber gainers 27 to one.

"The index has been like a casino over the past few weeks, with traders speculating in smaller cap stocks in the hope of making a quick buck," says Dhall.

"Now they've run out of buyers and are stuck in these stocks and so they're selling holdings in blue chips to generate some liquidity." (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM