Emaar, Arabtec and Arabex lead UAE surge

Improved local fundamentals and gains in world markets increase risk appetite
Emaar, Arabtec and Arabex lead UAE surge
Dubai stock market
By Reuters
Mon 20 Feb 2012 11:02 AM

UAE markets extend gains, with Dubai's index hitting a fresh eight-month high as improved local fundamentals and gains in world markets increase risk appetite.

Dubai's bellwether Emaar Properties gains 0.7 percent, builder Arabtec rises 1 percent and logistics firm Aramex climbs 1 percent.

The emirate's benchmark is up 0.4 percent at 1,578 points, extending year-to-date gains to 16.5 percent as trading volumes also surge. It remains 75 percent below a 2008 peak.

Investor sentiment lifted in recent weeks on decent corporate earnings and surprise cash dividends.

Abu Dhabi's Aldar Properties last week proposed a dividend of 0.05 dirhams per share and swung back to profit in 2011.

Shares in the developer are up 1.9 percent, hitting a three-month high on Sunday.

Competitor Sorouh Real Estate gains 3.9 percent, while Dana Gas climbs 4.3 percent.

Abu Dhabi's index is up 0.2 percent at 2,494 points.

Elsewhere, Kuwait's benchmark rises 0.6 percent to 6,117 points, a fresh seven-month high.

Global markets are up as policy easing by China and expectations that Greece will secure a second bailout buoyed investor appetite for riskier assets, sending U.S. crude and copper up nearly 2 percent.

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