Dubai, Abu Dhabi hit 24-week closing highs

STOCK WATCH: Dubai Financial Market, Emaar and Arabtec together accounted for more than half of trading on the benchmark.(Getty Images)

The Abu Dhabi and Dubai indexes hit 24-week closing highs, but some of the latter's early-session gains were eroded as it again failed to break above 2,000 points.

Dubai's benchmark DFM climbed 2.1 percent to 1,960 points, its highest finish since Dec 14, with Dubai Financial Market surging 9.4 percent as investors bet the market's rising volumes will translate into bigger profits.

Emaar Properties rose 3.8 percent and Arabtec added 2.4 percent. Dubai Financial Market, Emaar and Arabtec together accounted for more than half of trading on the benchmark.

"For long-term, value investors Dubai is cheap with many stocks trading below their book value and so if you believe in the long-term story of Dubai there's a good opportunity to buy," said Shakeel Sarwar, Sico investment bank head of asset management.

Abu Dhabi's index ADI also ended higher, rising 1.5 percent to 2,725 points, its highest finish since Dec 14.

"We are part of the global equity market and good news, particularly from the U.S., has lifted Gulf stocks, with buyers risk appetite for equities rising since March," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.

Emirates Telecommunications Corp (Etisalat) climbed 2.8 percent.

Qatar:

Banks and petrochemicals propelled Qatar's index QSI to a 30-week closing high as investors backed government moves to support key companies.

The benchmark rose 2.5 percent to 7,255 points, its highest finish since Nov 6 last year as Industries Qatar and Qatar Islamic Bank rose 5.8 and 2.4 percent respectively.

This week, Qatar's government launched a $4.1bn fund to buy up banks' depressed property portfolios and agreed a $319m settlement with Industries Qatar over steel prices.

Kuwait:

Kuwait's index also ended higher, rising one percent to 8,336 points, with Mobile Telecommunications Co (Zain) rising 1.8 percent after resuming trading mid-session.

"The near-term outlook is good," says Shahid Hameed, Global Investment House head of asset management for the Gulf region.

"The market has run up quite a bit and so one should expect some consolidation, but we're heading towards the second-quarter results season and trading remains buoyant."

Bahrain:

Bahrain's index BAX edged up 0.2 percent to 1,635 points.

Cement companies helped Muscat's index MSI end at a three-week high.

Raysut Cement Co and Oman Cement Co rose 4.7 and 2.3 percent on slim volumes. Bank Muscat climbed 0.4 percent and was the second most traded share.

The benchmark advanced 1.3 percent to 5,566 points, its second rise in three sessions and highest close since May 10.

Oman:

Foreign investors were buying blue chip stocks such as Bank Muscat, Raysut Cement and Renaissance Services, said Hassan Tawfiq, a senior broker at United Securities in Muscat.

Renaissance fell 1.4 percent and investors and companies were cautious despite the market rising, said Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat.

"Oman companies are very guarded about their prospects for 2009, particularly banks," Dhall added. (Reuters)

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