Arabtec shares jump 10% to 27-month high

Dubai’s Arabtec surges to 27-month high, extending early-year gains in a rally that brokers are struggling to explain.

Arabtec climbed  10.1 percent, having been up as much as 13.4 percent intraday to reach its highest level since November 2009.

The builder's stock is up 65 percent this year, but remains 66 percent below a 2008 peak, having tumbled along with other property-related stocks as Dubai’s real estate boom crashed.

"We are moving beyond fundamentals with this type of move on Arabtec," said Julian Bruce, EFG-Hermes director of institutional equity sales.

Contractor Drake & Scull climbed 4.2 percent and Shuaa Capital added 2.4 percent.

Dubai's index rose 1.5 percent to 1,489 points, reaching a six-month intraday high, but failing to hold above the psychologically important level of 1,500.

"The feeling of improved sentiment at a grass roots level in the UAE has started to spill over into equities," said Bruce.

"It's too soon for everyone to become over-enthusiastic, but there are signs of improvement in the real estate, retail and hospitality sectors and the market was very cheap."

Abu Dhabi's benchmark rose 0.2 percent to 2,484 points. It hit a three-month high of 2,508 points in early trade, but has since slipped back.