JEDDAH/DUBAI: Real estate and construction stocks led by Arabtec helped lift the UAE markets on Monday, as other Gulf markets ended mixed.
Dubai-based Arabtec gained 14.8 percent, surging on speculative buying, though its chief executive told Reuters he was unaware of a reason for the stock surge. It has surged more than 20 percent in the past two trading days.
“Buying in Arabtec is predominantly retail buying by local investors,” said Julian Bruce, director of institutional equity sales at EFG Hermes in Dubai.
“With the state of the market currently, there’s always the danger it’ll give it back the following day. There are enough day traders in the market to make it favorable for profit-taking for short-term players.”
Bellwether Emaar Properties advanced 5.6 percent, further fueling the mini-rally rally on Dubai’s index, which ended 3.4 percent higher at 1,829 points.
Property stocks attracted buying on Abu Dhabi’s benchmark as well, reversing the previous session’s marginal losses. Aldar Properties added 2.2 percent, and Sorouh Real Estate climbed 2.7 percent. Investment company Aabar rose 1.8 percent.
“There are positive inputs from the international markets, and locally, the bailout of Dubai World has restored some investor confidence,” said Vyas Jayabhanu, head of investments at Al Dhafra Financial brokerage. “These are dwindling volumes, and it is not really possible to assess the market right now,” he said.
Abu Dhabi’s index added 1.2 percent to 2,728 points.
Banks dragged the Saudi index 1.2 percent lower after central bank data showed a decline of more than 12.5 percent in national banks’ profitability in the October-November period.
Hollandi Bank fell 2.2 percent, Saudi British Bank slipped 2.9 percent and Samba Financial Group declined 1.9 percent.
Kuwait’s largest Islamic lender, Kuwait Finance House, fell 3.4 percent despite signing a US real estate deal on Sunday. The index slipped 0.8 percent to 7,057 points. “The major trend is down,” said a research note from NBK Capital.
Logistics firm Agility ended 1.5 percent lower after the company said it was in talks with the US government regarding a settlement in a fraud case but that a deal was yet to be reached.
Qatar’s benchmark rose marginally, while Oman’s index ended 0.3 percent higher.
— With input from agencies
