Tuesday, January 29, 2013

Dubai Stocks Rise Most in World on Profit Bets, Property Rebound

Dubai stocks advanced the most in the world as a real estate recovery in the sheikhdom spurred bets companies including Emaar Properties PJSC (EMAAR) will post stronger full-year earnings and dividends.

Emaar, developer of the world’s tallest tower, surged to the highest level since October 2009. Emirates NBD PJSC (EMIRATES), the biggest United Arab Emirates bank by assets, soared 8.6 percent on volume of more than six times the three-month daily average. The benchmark DFM General Index jumped 1.8 percent to 1,853.17, the strongest since April 2010, at the close in Dubai. The gain was the biggest among 94 global indexes tracked by Bloomberg.

Dubai’s property industry recovered last year after a crash sent prices plunging 65 percent from mid-2008 peaks. Emaar, which has the heaviest weighting on Dubai’s measure, rose 7.4 percent since saying Jan. 27 that a luxury hotel project in central Dubai sold out all units available in the first offering. The developer’s 2012 profit probably rose 16 percent, the average estimate of 11 analysts compiled by Bloomberg shows.

“Long-term investors have returned to the market amid strong economic and earnings fundamentals, particularly for bigger companies such as Emaar and Emirates NBD,” said Dubai- based Waleed Al Khateeb, senior finance manager at Daman Securities LLC. “Sentiment for the real estate sector is strong and investors expect the recovery to continue this year as new projects are announced and the worst is behind us.”

Bloomberg News

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