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Thu 26 May 2011 11:00 AM

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Dubai ends five-day drop; Emaar, Aramex rise

DFM rises for first time this week on investor speculation that recent declines are overdone

Dubai ends five-day drop; Emaar, Aramex rise
(Getty Images)

Dubai shares rose for the first time
this week on investor speculation recent declines are overdone and as emerging
market stocks rallied before a report that may show the US economy is growing
faster than expected.

Emaar Properties, builder of the
world’s tallest skyscraper, increased the most in more than a week. Aramex, the
Middle East’s largest courier company, climbed 1.1 percent.

The DFM General Index rose 0.5
percent to 1,534.35 at the 2 pm close in Dubai, trimming the drop for the
week to 3.1 percent. The MSCI Emerging Markets Index jumped 1.2 percent at 2:44
pm in Dubai.

The gain is a “technical recovery as
investors saw some good buying opportunities in the market” after the recent
drop, said Sebastien Henin, who helps oversee $110m at The National Investor in
Abu Dhabi. Investors see “the main risk coming from the eurozone,” which could
explain local market correlation with global stocks, Henin said.

US stocks climbed on Wednesday
before a report that may show gross domestic product expanded 2.2 percent last
quarter, faster than the 1.8 percent pace initially forecast, according to
economists surveyed by Bloomberg before Thursday’s Commerce Department report
at 8:30 am local time. European policy makers are seeking ways to restore
investor confidence on increasing concern Greece won’t be able to repay its
debts.

A decline of 6.1 percent this month
has left the 30 companies in Dubai’s benchmark index valued at about 8.7 times
estimated earnings, data compiled by Bloomberg show. That compares with 11
times for the MSCI Emerging Markets Index.

Emaar rallied 1.3 percent, the most
since May 17, to AED3.06. Aramex also advanced the most since May 17 to AED1.80.

Qatar’s QE Index increased 0.7
percent and Kuwait’s measure rose 0.1 percent. The Bloomberg GCC 200 Index
advanced 0.2 percent. Abu Dhabi's ADX General Index slipped 0.1 percent and
Oman’s gauge retreated 0.8 percent, its third day of losses. Bahrain’s BB All
Share Index slipped 0.3 percent. Saudi Arabia’s market is closed for the
weekend.

 

 

 

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