Dubai stock market hits 40-month high
The Dubai stock market index rose to a 40-month high today as investors continued their buying spree expecting strong first-quarter earnings.
Emaar Properties rose 2.1 percent, Dubai Islamic Bank gained 6.7 percent and Drake and Scull jumped 7.5 percent.
The market rose above the year high hit in late February, breaking a norm where investors tend to cash out at this time of the year after dividend payments.
“This year, the trend is different because other than the sentiment and liquidity improvement, shareholders have decided to put most of the dividends back into the market, which has helped the move,” said Mohammed Ali Yasin, managing director of Abu Dhabi Financial Services. “People are looking at next year’s dividends.”
Expectations of further gains on the market is encouraging sentiment and the second quarter may see another rally, Yasin added.
The emirate’s index climbed 2.4 percent to 1,962 points, its highest close since November 2009.
Abu Dhabi’s benchmark added 0.6 percent to finish at 3,088 points, its highest since October 2009.
Saudi Arabia’s bourse hit a 10-day high as bank stocks extend gained after some lenders posted estimate-beating earnings, while Egypt’s bourse rose for a fourth session.
Saudi’s top listed lender Al Rajhi Bank climbed 0.8 percent. The bank is forecast to post a 1 percent growth in quarterly earnings, according to an average of nine analysts polled by Reuters.
The kingdom’s benchmark rose 0.3 percent to 7,185 points, its highest level since March 30. Technical analysis indicates that a break above 7,190 would trigger a rally.
In Egypt, the index climbed 1.3 percent to 5,180 points, up for a fourth session since April 3′s four-month low. Bargain hunters buy bluechips despite a deteriorating economy.
- Reuters, April 10, 2013