Dubai developer sees shares rise more than 5% on back of Dubai World Central announcement
Dubai's Emaar Properties surged to a 63-month high on Thursday after the developer announced a joint-venture project near the emirate's 2020 World Expo site, while Cairo's bourse rallied to pre-revolution levels.
Emaar's project with Dubai World Central (DWC) includes hotels, malls and golf course communities.
"Emaar will benefit overall from the kind of projects being built around the Dubai real estate recovery as well as the World Expo 2020 - today's announcement is an example," said Ali Adou, portfolio manager at The National Investor. "The only real quality real estate name is Emaar in terms of financials."
Shares in Emaar surged 5.1 percent, the biggest one-day move in three months to hit their highest level since September 2008.
Dubai's index rose 1.9 percent to a new five-year high and recording its biggest daily move since Oct. 20.
The measure has surged 93.7 percent year-to-date and is among the best performing world equity markets.
"There is still momentum in the market and investors are bullish.... But there aren't any catalysts except in the real estate sector," Adou said.
In Egypt, bulls were in full force after the benchmark index crossed a key resistance level.
It climbed 1.8 percent to 6,604 points, its highest level since January 2011, crossing the Nov. 20 high of 6,497 points - the previous peak. The market has recovered losses set off after mass protests were held on Jan. 25 2011, the start of a revolution that ended Hosni Mubarak's protracted autocratic rule.
"People are praising the fact that the market broke the 6,500 level, which was a major resistance," said Mohamed Radwan, director of international sales at Pharos Securities.
"Local institutionals and retail are the driving force behind these gains."
Large-caps supported gains with Commercial International Bank up 1.7 percent, Telecom Egyptgaining 1.7 percent and National Societe Generale Bank up 4.6 percent.
Real estate shares surged, backed by expectations of a pick-up in the sector from fresh investments.
Sixth of October Development and Investment Co, and Upper Egypt Construction rose 4.2 and 5 percent respectively.
In Saudi Arabia, the measure slipped 0.1 percent, trimming 2013 gains to 23.3 percent.
Elsewhere, Qatar's index climbed 0.3 percent, while Kuwait's benchmark shed 0.6 percent.