Dubai Shares Lead Mideast Gains on Property Optimism: Inside EM

(Bloomberg) --

Stocks in Dubai led gains across the Middle East amid optimism that Emaar Properties PJSC earnings may point to a wider recovery in the emirate.

The Dubai Financial Market General Index jumped about 1% as Emaar advanced as much as 2.8%, the biggest gain on the gauge in point terms. Qatar’s main index rose as much as 0.2%, even after the country’s finance minister was ordered detained Thursday.

Growing confidence Gulf states are on the cusp of an economic rebound is stoking speculation that property developers will be the biggest beneficiaries. Emaar, which is due to release earnings results in coming days, said last month first-quarter property sales more than doubled from the same period last year.

“The focus will be on Emaar’s results in Dubai to see the impact of stabilizing real-estate prices on the emirate’s largest developer and bellwether stock,” said Hasnain Malik, the head of research at Tellimer in Dubai.

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Equity markets elsewhere in the region were also buoyed by expectations governments and central banks around the world will keep stimulus in place for the time being. U.S. stocks rose Friday, with the S&P 500 Index hitting a record, even after a much weaker-than-expected jobs report.

Gauges in Abu Dhabi, Kuwait, Bahrain, Egypt and Israel made gains Sunday, while Oman’s main index slipped and Saudi Arabian shares were little changed.

While the jobs report reaffirmed the outlook for loose policy in the U.S., regional markets are digesting an order for the arrest of Qatar’s finance minister as well as earnings misses versus expectations, Malik wrote in emailed comments.

MIDDLE EASTERN MARKETS:

• Dubai Financial Market General Index leads gains in the region, rising for a third session
  • Emaar Properties +2.3%; Dubai Islamic Bank +1.1%; Emaar Malls +2.3% at 12:18 p.m. local time
  • NOTE, on Thursday: Emaar Development on Record Winning Streak Ahead of Results
• Abu Dhabi’s ADX General Index climbs as much as 0.8%
  • Arkan Building Materials rises as much as 15%
• Qatar Exchange Index rises 0.2% at 11:15 a.m. local time after falling as much as 0.3%
  • Qatar Insurance +2.8%; Commercial Bank of Qatar +0.9%; Mesaieed Petrochemical +0.9%

  • NOTE: Qatar’s prosecutor ordered the arrest of Finance Minister Ali Sharif Al-Emadi to question him over alleged abuse of power and misuse of public funds

    • The minister was removed from post and Ali Al-Kuwari, the Trade and Industry minister, was named as acting finance minister
• Saudi Arabia’s Tadawul All Share Index little-changed at 11:14 a.m. in Riyadh after rising as much as 0.4%
• Kuwait’s Premier Market Index jumps 0.3% at 11:17 a.m. local time

FINANCIAL RESULTS:

• Tawuniya (TAWUNIYA AB) 1Q Profit 80.8m Riyals, -5% y/y
• Saudi Ground Svcs (SGS AB) 1Q Loss 16.7m Riyals, vs. Loss 51.5m y/y
• Tabreed (TABREED UH) 1Q Profit 85.5m Dirhams, +4% y/y
• Dana Gas (DANA UH) 1Q Profit 88m Dirhams, +42% y/y
• Al Hammadi (ALHAMMAD AB) 1Q Profit 35.5m Riyals Vs. 24.9m Riyals Y/y
• Seera Group (SEERA AB) 1Q Loss 131m Riyals Vs. Profit 1.11b Riyals Y/y
• Zain Saudi (ZAINKSA AB) 1Q Profit 41m Riyals, -61% Y/y
• Kuwait Finance House (KFH KK) 1Q Profit 50m Dinars, +13% Y/

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