Stocks News Mideast- Dubai hits 24-wk peak on earnings hopes; Qatar extends gains
Tuesday, 16 October 2012
Dubai's measure rallies to a 24-week closing high and the bourse's own stock also gains, supported by upbeat sentiment in anticipation of quarterly earnings.
The emirate's index rises 0.6 percent to 1,646 points, its highest close since April 26.
Shares in Dubai Financial Market, the Gulf's only listed-exchange, climb 0.9 percent.
Trading volumes in the third-quarter rose to 5.7 billion shares from 3.5 billion in the year-earlier period, an indicator of earnings growth for the exchange.
Three analysts polled by Reuters forecast an average profit of 6 million dirhams for DFM, up from a 9.3 million dirhams loss in the same period last year.
Real estate and related stocks rise with Emaar Properties up 0.5 percent, mortgage lender Tamweel gaining 2.2 percent and engineering firm Drake & Scull climbing 0.1 percent.
"UAE indices have had a good run, driven by an improving economic backdrop and a recovery in selective demand for real estate properties, as evidenced by Emaar's recent sales and project announcements," says Sleiman Aboulhosn, assistant fund manager at Al Masah Capital.
"This improved backdrop is driving sentiment higher, but we still have some uncertainties like the Aldar-Sorouh merger. Overall, we believe that the current rally still has some upside to it."
Aldar Properties and Sorouh Real Estate, Abu Dhabi's two major developers, are in advanced talks and a merger could take place within a month.
Abu Dhabi's measure ticks up 0.1 percent to close at 2,647 points, extending year-to-date gains to 10 percent.
Elsewhere, Qatar's index closes 0.4 percent higher at 8,558 points, its highest close since Sept. 24.
Qatar Electricity and Water and Industries Qatar are the main support, rising 1.1 and 1.9 percent respectively.
IQ posted a 23.7-percent jump in third-quarter net profit on Sunday, beating average analysts' forecasts. (Reuters)