Dubai bourse takes a hop over US jobs

Dubai stocks rose to the highest level since May after companies in the United Arab Emirates reported results that beat estimates and US employment data boosted global stocks and oil prices. Emaar Properties, developer of the world’s tallest skyscraper, increased to the highest in more than a year. Air Arabia, which may this week post an increase in profit, rallied 0.9 per cent. The DFM General Index rose 1.6 per cent to 1,575.32 at the close in the emirate, the highest since May 3. Abu Dhabi’s gauge advanced 0.1 per cent. About 117 million shares were traded in Dubai, compared with the 12-month daily average of 140 million shares. “Investors are encouraged by the earnings reported by real estate developers and banks,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “Also, the positive momentum in international equity markets is helping boost confidence.” US stocks capped four weeks of gains, giving the Dow Jones Industrial Average the longest rally since October, after a Labour Department report showed American payrolls climbed more than forecast. Oil surged 4.9 per cent on Aug. 3 to $91.4 a barrel. Gulf Arab oil exporters, including the UAE and Saudi Arabia, supply about a fifth of the world’s oil. In Egypt, the EGX30 Index rose 0.9 percent to 5,034.77, the highest level since May 14. The North African nation will resume talks with the International Monetary Fund for a $3.2 billion loan when Ramadan, the Islamic fasting month, concludes later in August, Finance Minister Momtaz El-Saieed said. Emaar rose 1.2 per cent to Dhs3.46, the highest close since April 2011. The company with the strongest weighting on Dubai’s index said last month second-quarter profit more than doubled to Dhs614 million ($167 million) as the emirate’s retail and tourism industries extended their best year since the 2008 property crash. The mean estimate of five analysts was for a profit of Dhs545 million, according to data compiled by Bloomberg. Air Arabia, the Middle East’s biggest discount airline, gained to 64.5 fils, the highest close since April 18. The company this week may post a 5 per cent increase in quarterly profit to Dhs52 million , according to the average estimate of Securities & Investment Co. and EFG-Hermes Holding SAE, data compiled by Bloomberg show. Elsewhere the  Kuwait’s benchmark stock index rose 0.2 per cent and Qatar’s QE Index gained 0.1 per cent. Saudi Arabia’s benchmark stock index decreased 0.1 percent, Bahrain’s gauge slipped 0.2 percent and Oman’s MSM30 Index fell 0.5 per cent. The Bloomberg GCC 200 Index closed unchanged. From:Gulftoday