Dubai Bourse Rebounds as Property Shares Gain

<B><font size="4">Pace; ADX Inches Up</b></font>

05/03/2009 00:00 AST

Shares on the Dubai bourse rebounded on Wednesday from recent steep losses led by property stocks, while buying interest resumed in Abu Dhabi as investors shrugged off continued global weakness.

Property stocks paced gainers in Dubai with the real estate index rising 6.18 per cent. The benchmark index of the Dubai Financial Market rose 3.51 per cent to 1,542.26.

The main index of the Abu Dhabi Securities Exchange inched up 0.85 per cent to 2,423.85.

The UAE shares fell on Tuesday as weakness on Wall Street and Asia, along with a grim view by Federal Reserve chairman Ben Bernanke, exacerbated worries about the health of the financial sector and the global economy.

“Retail investors drove the markets today. They are thriving in these short-term opportunities while foreign institutional investors are adopting a wait and see strategy,” said Mohamed Galal, head of institutional sales of Al-Futtaim HC Securities.

Investors are more at ease getting back into the market after recent moves to restore confidence in the markets like the $10-billion bond issuance by Dubai, said Samer Al-Jouni, general manager of Middle East Financial Brokerage.

“People are psychologically comfortable and are ignoring global equities in the meantime.”

Index movers Arabtec Holding and Emaar Properties clawed back from recent declines.

Arabtec, the country’s largest construction company, jumped 2.13 per cent to Dh 1.55. Emaar, the region’s biggest property developer gained 6.28 per cent to Dh2.03.

“Buyers continue to buy Emaar on thinking that any Federal cash support for the real estate sector will be positive,” said Matthew Wakeman, managing director of cash and equity linked trading at EFG Hermes.

“These stocks are like coiled springs at current levels, the harder you push down on them, the faster they whip back.”

Deyaar Development gained 2.12 per cent to Dh 0.48 while Union Properties added 5 per cent at Dh0.63.

Select banks also edged up with the Dubai Islamic Bank heavily traded, rising 9.25 per cent to Dh2.36.

The Dubai Financial Market, the first Gulf Arab exchange to sell shares to the public, outperformed the market, jumping 12.84 per cent to Dh1.23.

In Abu Dhabi, the index was lifted by Emirates Telecommunications Corp. or Etisalat, the country’s largest phone company which gained 4.09 per cent to Dh8.80. The National Bank of Abu Dhabi added 4.09 per cent to Dh8.80.

Major property developer Aldar Properties rose 3.14 per cent to Dh2.34, while Sorouh Real Estate was up 2.35 per cent to Dh2.22.

Khaleej Times