Advance by Dubai bourse leads markets in region

The Dubai Financial Market (DFM) General Index yesterday rose 2.8 per cent to 1,774.43, extending its gains to 11 per cent since the beginning of the month.

DUBAI // Shares in Dubai continued their recent upward march, gaining the most among regional markets yesterday with strong results in property and financial services stocks. The Dubai Financial Market (DFM) General Index rose 2.8 per cent to 1,774.43, extending its gains to 11 per cent since the beginning of the month. Emaar Properties rose 5 per cent to Dh3.85. The bourse's shares, traded as DFM Co, were also among the major gainers, ending the session up 6.3 per cent, followed by Dubai Investment's 6 per cent increase. Emirates NBD, the UAE's largest lender by assets, advanced 4.6 per cent.

"It's generally positive sentiment as investors are hoping to hear a positive disclosure on Dubai World restructuring soon. We expect this trend to continue in the short term," said Ayman el Saheb, the head of operations at Darahem Financial Brokerage in Dubai. Despite its recent gains, the DFM is still the only regional bourse that is not positive for the year. It is trading 1.6 per cent lower since the start of the year.

The Abu Dhabi Securities Exchange General Index advanced 1 per cent to 2,857.40. It has risen 4.8 per cent this month. Banking and financial services stocks rallied yesterday with Union National Bank rising 4.5 per cent, followed by Bank of Sharjah up 3.3 per cent. Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank rose 2.8 and 1.7 per cent, respectively. "The Abu Dhabi rally is basically a rub-off of Dubai gains," Mr el Saheb said.

Kuwait and Qatar stocks declined marginally, while the Muscat market climbed 0.7 per cent and Saudi Arabia's and Bahrain's indexes both advanced 0.4 per cent. [e-mail]