DUBAI: Dubai’s index jumped to a five-year high, recovering losses from a pullback earlier this week, while other regional markets also rose.

Dubai climbed 1.8 percent to its highest close since October 2008, its second straight gain following a three-day correction from Sunday to Tuesday.

Investors have taken positions ahead of fourth-quarter earnings and dividend payouts, which are due in a few weeks, although there are concerns some stocks are now overpriced.

“Banks are still attractive from a dividend yield perspective but we have to take a breather in some names,” said Ali Adou, portfolio manager at The National Investor.

Renewed buying comes as investors open new accounts under revised margin lending regulations.

Earlier in the week, changes to margin lending rules and the threat of bigger penalties for brokerage firms failing to adhere to these regulations led some to ask clients to cut their leverage.

“Investors needed to open new accounts for margin trading and transfer money from previous accounts to trade again — hence we’re seeing a pick-up in the market,” said Hisham Khairy, head of institutional trading at MENA Corp.

Abu Dhabi banks drew buyers on hopes of strong dividends. National Bank of Abu Dhabi rose 2.4 percent, outperforming the emirate’s index percent gain.

Elsewhere, shares in Egypt’s EFG Hermes rose 4.8 percent to an 11-month high after the investment bank approved a 1 billion Egyptian pounds ($143.8 million) buyback plan.

Trading in EFG shares was halted mid-session and Wednesday’s trades were canceled “pending further clarifications,” the bourse said. Trading resumed before the end of Thursday’s session.

Cairo’s benchmark index climbed 1.3 percent to its highest close since January 2011, when former president Hosni Mubarak was still in power.

“Technical resistance levels are being breached and there is positivity in the market because of the upcoming referendum and elections,” said Ashraf Akhnoukh, co-head of MENA sales at CIBC, CI Capital’s brokerage.

“People believe the constitution will pass smoothly and once it does, we will head into a better Egypt, which is being reflected on the market.”

Egyptians will vote on a new constitution on Jan. 14-15.