Blue-chip banks and property-related stocks lifted markets in the United Arab Emirates in early trade on Sunday as Dubai construction firm Arabtec continued to lead a recovery from last month’s slump.
Dubai’s main index climbed 2.4 per cent as shares in Arabtec jumped 5.4 per cent. Among other top gainers were bourse operator Dubai Financial Market and builder Drake and Scull, up six and 5.3 per cent respectively.
Lender Emirates NBD added 2.8 per cent and Dubai Islamic Bank rose 1.7 per cent.
Banks and property developers also lifted Abu Dhabi’s index, which added 0.6 per cent. First Gulf Bank gained 1.2 per cent and Aldar Properties, two per cent.
“It’s a technical rebound, nothing more,” said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi.
Both UAE markets started recovering this month after Dubai’s bourse plunged 22 per cent in June and Abu Dhabi lost 13 per cent, in panic selling triggered by the bursting of a speculative bubble and management turmoil at Arabtec.
However, Qatar’s bourse, which followed a similar pattern as it was upgraded along with the UAE to emerging market status by index compiler MSCI at the end of May, was nearly flat on Sunday morning.
“In Qatar we had seen a very strong technical rebound (last week), but it may have been too strong so we are now seeing some profit-taking,” Henin said.