Dubai shares rise on real estate recovery optimism
DUBAI: Dubai’s benchmark index gained for the seventh time in eight days as real estate companies rose, shrugging off an emerging markets drop. The DFM General Index climbed 0.6 per cent to 5,116.49 at the close in the emirate after increasing as much as 1.6 per cent.
Emaar Properties, the stock with the highest weighting on the gauge, rose 1.9 per cent. Arabtec Holding advanced on bets it may form an alliance with Abu Dhabi’s Aldar Properties.
Dubai’s gauge is up 52 per cent this year, making it the best performer among more than 90 measures tracked globally by Bloomberg. Developers and contractors in the emirate are benefiting from a real estate-led economic recovery and stand to gain further from about $8 billion of infrastructure spending planned ahead of World Expo 2020.
“Emaar is seeing some foreign buying, the euphoria from the last week’s better-than-expected earnings is still there,” Hisham Khairy, the Dubai-based head of institutional trade at Mena CorporationFinancial Services, said by phone.