Otherwise Gulf markets were mixed on Sunday with Saudi Arabia, Kuwait and Bahrain ending lower, while Abu Dhabi, Qatar and Oman advanced.
“It is linked to finalization of Dubai World’s debt issue with its creditors or the inclusion in the FTSE emerging market index,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.
FTSE confirmed the classification of the UAE as a “secondary” emerging market within its global equity index series on Thursday, which the index provider says is the first time the country has been added in a global equity universe.
Dubai gained 2.2 percent to 1,683 points, its highest close since May 20. “At the same time there is interest from investors to build positions ahead of the close of the third quarter,” Shurrab said.
Real estate-related stocks such as Emaar Properties, which gained 1.6 percent, were among those stocks to lift the index. “If you look at those stocks performance, they are among the worst performers this year so it’s normal to see them attracting more liquidity now,” Shurrab added.
In Kuwait, Burgan Bank eased from Thursday’s 20 month high after the lender appointed a new chief executive, mirroring declines in other local banks as investors book profits.
Burgan Bank, which fell 3 percent and which is the commercial banking arm of Kuwait Projects Co. (KIPCO), has appointed Eduardo Eguren as its chief executive officer. The Kuwaiti index fell 0.7 percent to 6,792 points.
Blue chips in Saudi Arabia showed little movement as the main index ended lower for a second session in three in lackluster trade, with many investors yet to return from their summer vacations.
The Tadawul All-Share Index (TASI) closed at 6,356.35 points.
Samba Financial Group climbed 0.4 percent, but SABB fell 1.3 percent and Saudi Basic Industries Corp. (SABIC) dipped 0.6 percent.
“Many families are still coming back from holidays, with the school year not starting until Saturday,” said a Riyadh-based trader at an international bank.
Wednesday is a national holiday in Saudi Arabia, deterring investors from opening positions in the shorter trading week.
“The market is only trading about two-thirds of the recent average, but this should pick up next week,” the trader adds.
In the coming weeks, investors will hope to at least consolidate the current levels.
The Qatari index climbed 0.5 percent to 7,594 points.
