Dubai’s benchmark stock index
rose to the highest in more than three months, extending a so-called
bull market, after Templeton Asset Management Ltd’s Mark Mobius said
local shares offer buying opportunities.
Investments, the company which owns stakes in more than 40
businesses plans, rallied 2.8 percent to the highest since October.
Deyaar Development, the property company part-owned by Dubai
Islamic Bank, advanced for a third day. The DFM climbed a seventh day, adding 0.3 percent to 1,652.76, the highest
level since January 10 at the 2:00 p.m. close in Dubai.
rose 1.6 percent on Sunday to close at 1,648.44, bringing the surge
from a low on March 3 to 22 percent. That surpassed a 20 percent
threshold some investors consider the beginning of a bull market. The
index is valued at about 0.7 times net assets, or book value, while the
MSCI Emerging Markets Index is valued at 2 times net assets.
“All in all
it’s looking good,” said Haissam Arabi, chief executive officer at
Gulfmena Alternative Investments in Dubai. “We’re still among the
cheapest markets in the region because we are coming from such a low
oversees $54bn in emerging markets, said on Sunday Dubai’s
banking, property and services shares offer buying opportunities. He
owns shares of DP World Ltd. and Aramex Co., the Middle East’s largest
courier company, and is “hanging on” to Emaar Properties, the
builder of the world's tallest tower.
Investments rose to 96.6 fils, the highest level since October 11. Deyaar
advanced 2.9 percent to 32.5 fils, the highest since November 4. Aramex
climbed 0.5 percent to 1.93 dirhams, while Emaar was unchanged.
banks, telecommunications and real-estate companies may carry “some
nice surprises” in the first quarter, said Arabi, who has a “bullish”
medium-term outlook on the emirate’s stocks. Emirates NBD, the
country’s biggest bank by assets, may report an 89 percent surge in
first-quarter profit to AED2.1bn ($572m), according
to an EFG-Hermes Holding SAE estimate on Bloomberg.
Gulf Cooperation Council markets, which include Saudi Arabia, the
United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, will benefit
from oil prices. Crude oil has surged 19 percent so far this year to
$108.36 a barrel amid an armed conflict in Libya. The six nations of
the GCC supply about a fifth of the world’s oil.
Abu Dhabi’s ADX
General Index rose 0.4 percent, Kuwait’s gauge advanced 0.5 percent,
while Saudi Arabia’s Tadawul All Share Index was little changed. The
Bloomberg GCC 200 Index slipped 0.2 percent, Qatar’s QE Index fell 1
percent, Bahrain’s BB All Share Index lost less than 0.1 percent and
Oman’s MSM30 Index dropped 0.1 percent.
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