Dubai shares rose for a second time this week, adding to this month’s gain in Gulf markets, as the emirate raised $1.25 billion in a bond sale and emerging-market stocks climbed to the highest level since June 2008.
Dubai shares rose for a second time this week, helping gains in Persian Gulf markets, after Dubai World’s debt accord last week boosted investor confidence and improved the outlook for company earnings. Emaar Properties PJSC , builder of the world’s tallest skyscraper and the company with the biggest weighting on the benchmark index, climbed 0.8 percent. Aramex PJSC, the Middle East’s biggest courier company, surged to a two-year high. The DFM General Index rose 0.4 percent to 1,627.15 at the 2 p.m. close in the emirate, bringing the gain since the Dubai World agreement on Sept. 10 to 2.2 percent. Qatar’s QE Index advanced 0.7 percent on its first trading day this week.
Prince Alwaleed bin Talal ’s bid to join with a partner to buy Zain’s holding in its Saudi unit may clear the way for Etisalat’s $12 billion offer for a majority stake in Kuwait’s biggest phone operator.
United Arab Emirates and Egypt shares are poised to attract overseas investors after Vanguard Group Inc., the largest U.S. mutual-fund provider, switched to FTSE Group from MSCI Inc., EFG-Hermes Holding SAE said.
Dubai stocks rallied to the highest level in more than three years as Emaar Properties PJSC’s new hotel project fueled bets revenue of the developer of the world’s tallest skyscraper will grow this year.
Dubai’s real estate stocks fell, led by Emaar Properties PJSC after the United Arab Emirates was said to have capped mortgages for expatriates, prompting concern a recovery in the property industry may be at risk.