Property, banks lift as Arabtec recovery continues

Dubai's main index climbed 2.4% as shares in Arabtec jumped 5.4% in early trading

Blue-chip banks and property-related stocks lifted markets in the United Arab Emirates in early trade on Sunday as Dubai construction firm Arabtec continued to lead a recovery from last month's slump.

Dubai's main index climbed 2.4 percent as shares in Arabtec jumped 5.4 percent. Among other top gainers were bourse operator Dubai Financial Market and builder Drake and Scull, up 6.0 and 5.3 percent respectively.

Lender Emirates NBD added 2.8 percent and Dubai Islamic Bank rose 1.7 percent.

Banks and property developers also lifted Abu Dhabi's index , which added 0.6 percent. First Gulf Bank gained 1.2 percent and Aldar Properties, 2.0 percent.

"It's a technical rebound, nothing more," said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi.

Both UAE markets started recovering this month after Dubai's bourse plunged 22 percent in June and Abu Dhabi lost 13 percent, in panic selling triggered by the bursting of a speculative bubble and management turmoil at Arabtec.

However, Qatar's bourse, which followed a similar pattern as it was upgraded along with the UAE to emerging market status by index compiler MSCI at the end of May, was nearly flat on Sunday morning.

"In Qatar we had seen a very strong technical rebound (last week), but it may have been too strong so we are now seeing some profit-taking," Henin said.

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