Dubai is severely affecting Middle Eastern stock markets
“We are in a rally, but at the end of the day it depends on whether it has legs and this depends on earnings.”
Click here to add Abdullah Alawi as an alert
Disable alert for Abdullah Alawi,
Click here to add Abu Dhabi as an alert
Disable alert for Abu Dhabi,
Click here to add Aljazira Capital as an alert
Disable alert for Aljazira Capital,
Click here to add Amer Khan as an alert
Disable alert for Amer Khan,
Click here to add Bawan Co as an alert
Disable alert for Bawan Co,
Click here to add Cairo as an alert
Disable alert for Cairo,
Click here to add Capital Market Authority as an alert
Disable alert for Capital Market Authority,
Click here to add Dana Gas as an alert
Disable alert for Dana Gas,
Click here to add Deyaar Development as an alert
Disable alert for Deyaar Development,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Egyptian government as an alert
Disable alert for Egyptian government,
Click here to add Emaar Properties as an alert
Disable alert for Emaar Properties,
Click here to add Emirates NBD as an alert
Disable alert for Emirates NBD,
Click here to add Mohamed Morsi as an alert
Disable alert for Mohamed Morsi,
Click here to add Qatar Investors Group as an alert
Disable alert for Qatar Investors Group,
Click here to add Riyadh as an alert
Disable alert for Riyadh
Cairo’s bourse recovered early-session losses and rose 0.7 percent to its highest close since January 2011. Investors took in stride fresh violence in the country, focusing instead on signs that the economy is stabilising.
A car bomb tore through a police compound in Egypt’s Nile Delta on Tuesday, killing 13 people and wounding more than 130, security officials said, in one of the deadliest attacks since President Mohamed Morsi was ousted in July.
Year-to-date gains by Dubai’s main stock index rose above 100 percent on Tuesday as investors, positioning for full-year earnings, pushed real estate and bank stocks higher. Most other regional markets also rose.
The Dubai index climbed 1.3 percent to its highest close since October 2008, extending its 2013 gains to 102.2 percent. Blue chip Emaar Properties gained 3.0 percent and Deyaar Development rose 6.5 percent. Heavyweight bank Emirates NBD climbed 1.5 percent.
“The play right now in the UAE is for earnings, more than dividends, which are more attractive in Saudi Arabia and Qatar,” said Amer Khan, fund manager at Shuaa Asset Management.“We are in a rally, but at the end of the day it depends on whether it has legs and this depends on earnings.”Some fund managers think a pull-back is likely in the near term since Dubai has risen so sharply. However catalysts such as MSCI’s planned upgrade of the United Arab Emirates to emerging market status next year mean any dip in prices will be well bid, Khan said.
Abu Dhabi’s measure climbed 0.3 percent to a fresh five-year closing high. Dana Gas rose 4.2 percent; it said it had just received $53 million from the Egyptian government out of a total of $330 million owed, and that Egypt had committed to work with the company on a plan to repay the remainder of its debt.Qatar’s index advanced 0.4 percent, extending its 2013 gains to 25.6 percent.Qatar Investors Group surged 8.0 percent, rising sharply for a third straight session, in what traders say is a rally driven by institutional buyers looking to win more seats on the board since the company said it would allocate them in proportion to share ownership.
In Saudi Arabia, the benchmark slipped 0.5 percent, easing off Monday’s 63-month high. Investors booked gains in banks; the sector’s measure shed 0.8 percent.Shares in Riyadh-based building materials firm Bawan Co jumped to 39.60 riyals on their first day of trade from an initial public offer price of 36.00 riyals. The Capital Market Authority has this year limited first-day trading moves to 10 percent, and the stock quickly went limit-up.
“To make the same amount of profit on IPOs as before, people will need to wait a few days,” said Abdullah Alawi, assistant general manager and head of research at Aljazira Capital.Previously, debut leaps of 50 percent or more were common and were often followed by sharp pull-backs.
- Nip, tuck: Dubai's grand plans for being a major player in medical tourism
- Zain, UNHCR, Facebook to bring free internet access to urban refugees in Jordan
- Yemen Central Bank headquarters to relocate from Sanaa to Aden
- IMF report details the crippling economic effects of conflict in MENA
- Start Up Lebanon entrepreneurs head to Silicon Valley Roadshow
- Egypt slides to 5-week low on political instability, Gulf mixed
- GCC Investment Strategy and Sectors Outlook for 2006
- Official: Arab Bourse Association to Move Seat from Cairo to Beirut
- UAE stock market slightly recovers following sharp losses
- Art Deco jewels showcased for the first time in the Middle East