DFM gains as Qatar touches 67-month peak

Reuters

DUBAI: Dubai’s bourse resumes gains after retreating earlier in the session as fresh money comes in, and Qatar climbs to a new 67-month high.

After two sessions of profit-taking, investors return to pick up Dubai’s property shares. Emaar Properties advances 1.9 per cent and Union Properties — which leads trading volumes adds 1.6 per cent.

Dubai’s measure DFM rises 0.7 per cent to 4,182 points, heading for its first gain since on Monday’s five-year high and extending 2014 gains to 24.1 per cent.

Abu Dhabi’s benchmark follows suit, advancing 0.6 per cent to 4,911 points, but it remains trapped in the tight range of about 80 points it has traded in for the last 10 days.

In Doha, the index .QSI climbs 0.5 per cent to 11,877 points, its highest intraday level since July 2008 and up 14.4 per cent year-to-date.

High speculative activity in small-cap stocks in the UAE markets in recent weeks has raised concerns with long-term investors. They are now finding Qatar’s market more attractive.

“Qatar could benefit now from investors moving from UAE to Qatar,” says Ali Adou, portfolio manager at The National Investor. “Logically, it is defensive by nature. Local and international institutionals will take positions because of its discount.”

UAE and Qatar’s markets are partly buoyed by an upgrade by MSCI to its emerging market status and analysts expect these markets to remain bullish at least until the upgrade is implemented at the end of May.

Dubai’s bourse may extend its bout of profit-taking on Thursday ahead of the weekend, with most 2013 earnings now out of the way and the global backdrop weak.

The Dubai index shed 0.6 per cent to 4,152 points in the previous session, its second decline since on Monday’s five-year high, following mixed earnings and dividends that disappointed investors.

“I would wait for a good buying opportunity but at the moment, the market looks scary and is not worth the risk,” says Hisham Khairy, head of trading for institutional desk at MENA Corporation

The market is up 22.3 per cent in 2014, raising some concern among long-term investors that it might be over-heating.

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