Dubai index closes at new 2009 high on back of Emaar

STOCKS LATEST: Dubai's index reversed earlier gains on Wednesday. (Getty Images)

Emaar Properties advanced to help Dubai's index reach a new 2009 closing high as gainers outnumber losers 19 to three.

Emaar rose 1.3 percent, taking its gains to 51 percent since May 20, and its highest close since Nov. 10.

"Emaar's next target is around 5 dirhams and technically the way is open up to this level because it fell very quickly from five to three dirhams and so not much resistance has been built in," said Nadim Jalad, a trader at Naeem Shares and Bonds in Dubai.

Such a move would push the Dubai index up to around 2,800 points, Jalad said, although there would be profit-taking along the way.

The index rose 1.5 percent to 1,989 points, its highest finish since Dec. 1.

Abu Dhabi's index made its largest one-day gain for 10 weeks to close at a 28-week high.

Emirates Telecommunications Corp (Etisalat) climbed 4.5 percent, leading gainers as 11 of the 12 largest stocks advance.

These included Aldar Properties, which surged 8.7 percent, plus Abu Dhabi Commercial Bank and First Gulf Bank which added 9.6 and 1.2 percent respectively.

"A lot of investors are saying the banking sector will make the next major move upward," said Chamel Sahmy, Beltone Financial regional senior sales trader.

"We will have to wait for the second quarter results to see how provisions are affecting bank profits, but with rising liquidity, their performance should improve from the first quarter."

The index climbed 3.1 percent to 2,810 points, its highest close since Nov. 20.

Saudi Arabia's index closed slightly higher as caution rose at the end of the trading week and US President Barack Obama arrived for a state visit.

The benchmark climbed 0.3 percent to 6,049 points, its fifth gain in six sessions.

Al Rajhi Bank climbed 1.8 percent, Saudi Arabia Fertilizers Co rose 1.5 percent and Riyad Bank added 2.6 percent to be the biggest gainers among the blue chips.

Qatar Gas Transport Co (Nakilat) led Doha's index to its highest close so far this year.

Nakilat rises 5.3 percent after claiming more than a third of all shares traded on the index.

"Nakilat didn't move with the market and so investors were expected to turn their attentions to the stock," said Osama Rayyan, chief dealer at Dlala Brokerage & Investment Holding.

"The company is expanding its fleet and this will lead to bigger revenues."

These gains helped the benchmark climb 1.7 percent to 7,376 points, ending higher for the fourth session in a row.

Oman's index reached a 21-week closing high as Bank Muscat made near double-digit gain.

The benchmark rose 2.2 percent to 5,687 points, its highest close since Jan. 4 and third advance in four sessions.

"The macro outlook is positive with oil prices up and global stocks doing well, which is boosting sentiment in the Gulf," said Shailendra Singh, investment manager at Al-Shurooq Securities.

Bank Muscat climbed 9.2 percent, its largest one-day rise since Oct. 14.

This compares favourably to its main rival, National Bank of Oman, which has a P.E. of 21.3, according to Reuters data.

"Bank Muscat is undervalued and has a fair value of at least 9.4 rials and so offers good potential for long-term investors," said Shailendra Singh, investment manager at Al-Shurooq Securities.

Oman's index climbed 1.8 percent to 5,668 points.

Industries Qatar soared after a $319m settlement from Qatar's government over steel prices, extending its rally.

Industries Qatar surges 6.8 percent, taking its gains to 23 percent over the past six sessions.

Banks also advance, with Qatar Islamic Bank rose four percent and Qatar National Bank added 1.5 percent following another government initiative to buy up Qatar banks' real estate portfolios.

"This will give banks huge amounts of new capital and will allow them to lend towards old levels, which should be positive for Qatar's economy," said Mohammed Yasin, Shuaa Securities chief executive.

Kuwait's index also rose to its highest close so far this year, extending its winning run to 10 sessions as it edges up 0.4 percent to 8,371 points.

National Bank of Kuwait and Kuwait Finance House surged 6.6 and 7.7 percent respectively.

Index volumes fell by a quarter from Tuesday's two-year high.

Mobile Telecommunications Co (ZAIN) plunged 7.1 percent after saying a court ruling in its favour would not affect the company's bottom line.

Bahrain's measure fell 0.6 percent to 1,626 points, its first decline in four sessions.

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