Dubai investors cheer improved global sentiment

The Dubai Financial Market (DFM) started the Islamic week in a bullish mode, due to an improved global sentiment following the European 50 percent-debt reduction deal with Greece from last Thursday. The DFM General Index ended 2.6 percent higher at 1,415.78 points on record high trading turnover. Market bellwether Emaar Properties was the most liquid share, jumped 5.77 percent to reach 2.75 dirham or 0.74 U.S. dollars. End of last week Emaar reported for the third quarter a fall in net profits of a third to 406 million dirham or 110.5 million dollars. Swiss bank Credit Suisse's analyst Ahmed Badr commented on Emaar's results: "Revenue and net profit dropped 33 percent and 34 percent year-on-year, respectively, on the back of expected lower units' delivery as the company delivered the bulk of units in (the 828 meter high) Burj Khalifa project last year and delivery of units in international has yet to filter through strongly, with delivery in Saudi and Egypt expected to hit the fourth quarter this year." Badr added: "We remain buyers of the stock post the results given attractive valuation (with an expected price to book value of 0.5 for 2012) and current levels which still offer about 17 percent potential upside on the value of Emaar's recurring income business which we value at 3.04 Dirham (0.82 dollars) per share." At Dubai's international market NASDAQ Dubai, the FTSE NASDAQ Dubai UAE 20 Index closed at 1495.920 today, up 2.61 percent, from the previous close. But shares of port operator DP World declined 0.91 percent to 10.90 dollars. In Abu Dhabi, the ADX General Index surged 1.51 percent to reach 2,508.94 points. In Qatar, the Doha-based QE Index closed up 0.98 percent to close at 8,619.63 points. But Saudi Arabia failed to jump on the bullish bandwagon. The Tadawul All Share Index (Tasi) finished 0.10 percent lower t 6,229. 64 points. Traders booked profits at Saudi Basic Industries Corporation. Earlier in the day the Saudi Capital Market Authority announced that it has approved United Electronics Company (eXtra) Initial Public Offering of 7.2 million or 30 percent of the company's total outstanding shares. The company's shares will be offered during the period from Dec. 5 to 11, once the book-building process is complete. EXtra's going public will mark the fourth IPO in Saudi Arabia in 2011 this year. Three IPOs in Riyadh so far raised an amount of 317 million dollars at the Tadawul bourse.