UAE markets end higher as traders pick up cheap stocks

UAE markets edged higher from Wednesday's multi-year lows as traders picked up cheap stocks, but activity was muted with volumes in Dubai at a two-week low. "This is mainly technical... a small retracement is bound to happen after such a huge dip," said Firas Yaish, business development manager at ICM Capital. "Especially since the drop wasn't based on fundamentals." Dubai's index ticked up 0.2 percent to 1,339 points, up from its lowest level since 2004. Dubai Islamic Bank gained 1.6 percent, Deyaar Development climbed 5.1 percent and Emaar Properties edged up 0.4 percent. In Abu Dhabi, Aldar Properties rose from an all-time low, ended 1.2 percent higher. It dismissed on Wednesday speculation it may delist from the Abu Dhabi market, which had pressured the stock in recent sessions. "The news on Aldar's delisting also helped cool the market worries," Yaish added. The emirate's benchmark climbed 0.3 percent to 2,351 points, hovering at a March 2009 low. Etisalat and Sorouh Real Estate supported, rising 1.4 and 2.5 percent respectively. Elsewhere, Qatar's Barwa Real Estate closed 6 percent higher after signing off Barwa Financial District to Qatar Petroleum. The index ends little changed. Oman's market edged up helped by gains in bellwether Bank Muscat but trader sentiment was risk-averse on the back of a murky global backdrop, while Kuwait's benchmark slipped to a four-week low. Oman's heaviest-weighted stock Bank Muscat ended 2.5 percent higher after saying it will launch a OR100m ($259.7m) rights issue in the second quarter of 2012. "The fund raising plan would help the bank in reinforcing its capital base and achieving higher asset growth," said Kanaga Sundar, Gulf Baader Capital Markets head of research. "We remain positive on Bank Muscat." The index edged higher 0.05 percent to close at 5,636 points, taking its December gains to 4 percent. "For the overall market, we see improved activity in the coming trading sessions looking at the New Year," Sundar added. Losers outnumbered gainers 17 to four. Raycut Cement limits gained on the index, falling 2.1 percent. Elsewhere, Kuwait's index ended 0.3 percent lower at 5,794 points, its lowest close since Nov. 28. Traders expect choppy and sluggish sessions amid a lack of local catalysts until the year-end.