The DFM General Index (DFMGI) surged 3.3 percent, the biggest jump since Jan. 23, to 5,247.29 at the close. The measure has soared 56 percent this year, making it the best performer among more than 90 benchmarks tracked by Bloomberg. Dubai Islamic Bank advanced 5.5 percent after first-quarter profit more than doubled. Deyaar Development PJSC (DEYAAR) rose the most since April 21 after reporting 1.3 billion dirhams ($354 million) in January-April sales. Qatar’s QE Index advanced 1 percent.
Banks including Dubai Islamic Bank and Emirates NBD PJSC, as well as property developers, beat analysts’ earnings estimates as Dubai benefits from an economic recovery. House prices, which more than halved during the global financial crisis, will jump as much as 40 percent in 2014, according to the emirate’s Land Department.
Investors are focused on banking and real estate stocks as “revaluations of assets and a reversal of provisions has positively impacted these sectors,” Tariq Qaqish, who oversees the equivalent of $136 million as head of asset management at Dubai-based Al Mal Capital PSC, said by phone today.
Dubai Islamic Bank (DIB), the biggest Shariah-complaint lender in the United Arab Emirates, jumped the most since Jan. 28 to 7.33 dirhams. The lender, which is looking to buy a 40 percent stake in an Indonesian bank, reported May 1 quarterly profit of 636.6 million dirhams. Deyaar climbed 3.7 percent to 1.70 dirhams.
Emaar Properties PJSC (EMAAR) surged 6.3 percent to 10.45 dirhams, the highest close in almost six years. The developer of the world’s tallest tower will offer apartments in Dubai’s Opera District on May 10.
Saudi Arabia’s Tadawul All Share Index advanced for a third day, rising 1 percent. Saudi Electricity Co. gained 4.7 percent to 15.51 riyals after signing contracts worth 4 billion riyals ($1.1 billion) to build 10 power generation plants. The electricity provider last week agreed to two similar deals with a combined value of 10.4 billion riyals.
Egypt’s EGX 30 Index climbed 0.6 percent to 8,308.15, the highest close since March 26. Arabian Cement is set to offer a 22.5 percent stake in an initial public offering, according to a company prospectus published today. It would be the first IPO in the country in more than three years.
Abu Dhabiâs ADX General Index (ADSMI) was little changed, Bahrain’s measure advanced 0.9 percent and Oman’s increased 0.3 percent. Kuwait’s gauge declined less than 0.1 percent.
Israel’s TA-25 Index lost 0.4 percent as shares of Delek Group declined 2.5 percent to 1,382 shekels. The yield on the government’s benchmark bonds due March 2023 dropped three basis points, or 0.03 of a percentage point, to 3.11 percent.-Bloomberg