Emaar Properties stock hits 49-week high

UAE MARKET: Dubai Financial Market. (Getty Images)

Shares in Emaar Properties surged 6.5 percent to a 49-week high, leading Dubai's benchmark to its highest close this year.

Meanwhile, Arabtec rose to a 51-week closing high, climbing 4.2 percent to AED3.71, its highest finish since October 21 last year.

Arabtec is one of five UAE stocks highlighted by Goldman Sachs in a report earlier this month.

"Based on one-year forward P/E, Arabtec is trading at a discount to its historical valuation average and to global peers," a Goldman reports states.

"With improving macroeconomic dynamics ... and expectations of improved liquidity coming from the second tranche of federal funding for Dubai, receivables payment periods should ease gradually and result in a re-rating, bringing Arabtec's valuation in line with its historical average."

Goldman gave Arabtec a buy rating, with a 12-month price target of AED5.01.

"It was a very positive report overall for the UAE and when these sorts of recommendations are issued, the big players start accumulating now for the long-term," says Ayman el-Saheb, Darahem Financial Brokerage director of operations.

Dubai's index ended at 2,373 points, up 3 percent and its highest finish since November 10 last year.

Saudi Arabia's main index closed up 1.6 percent at 6,450 points, after reaching a new high for the year just before the close.

Analysts pointed to global oil price rises as the trigger for the Saudi benchmark to move upwards.

Shares in Kingdom Holding, which is one of the largest shareholders in Citigroup, and owned by Prince Alwaleed bin Talal, jumped 7.14 percent.

The main index in Abu Dhabi also closed higher, up 0.2 percent on 3,229 points.

"Markets are still closely correlated to global moves. Chinese export data today was good," Wakeman added.

Qatar's index closed marginally lower after mixed corporate earnings.

The index ended 0.02 percent down on 7,290 points.

Industries Qatar closed 1.3 percent higher after announcing better than expected third-quarter earnings.

Qatar Gas Transport Co eased 0.8 percent despite posting a 129 percent rise in its earnings for the first nine months.

Performance on other regional markets was mixed. Kuwait's bourse registered marginal gains and ended 0.03 percent higher at 7,713 points while in Bahrain the main index ended 1.1 percent lower at 1,548 points.

Oman Cable Industry weighed on the main index after registering an 8 percent decline in third quarter profits on Tuesday. The stock ended 4 percent lower.

The index closed marginally higher, climbing 0.21 percent on 6,648.76 points.

"The market is a little slow, we're seeing very low volumes, volumes are down 50 percent from the average," says Adel Nasr at United Securities.

"The reaction to Oman Cable Industry results was very bad, this has spread negative pressure in the market but from an analyst view we believe forthcoming results will be in line with expectations or better," says Nasr.

Bank Muscat lifted the benchmark, rising 0.7 percent. (Reuters)

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