Finance and property lift UAE stocks

Dubai: Upward momentum in banking, finance and real estate stocks helped the UAE bourses to advance yesterday. While the Dubai index gained 1.26 per cent to 5,813.04, Abu Dhabi added 0.62 per cent to close at 5,092.87.

In terms of turnover value, the Dubai Financial Market General Index has added Dh1.74 billion in the past five days. At the day's close yesterday, the turnover was Dh2.36 billion.

Banks and finance stocks edged up 1.36 per cent and 2.16 per cent respectively. Real estate rose 1.21 per cent. The two biggest mortgage finance companies, Amlak Finance and Tamweel, gained 3.83 per cent and 3.66 per cent to close at Dh5.15 and Dh8.50 respectively. Emaar Properties was up 0.86 per cent. Deyaar Development Company closed at Dh2.31, advancing 1.76 per cent.

Though the Abu Dhabi index has outperformed Dubai this year, EFG-Hermes, in their GCC strategy note on the outlook of the UAE markets in the second half of the year, said the second half might throw up a different picture. Till now, the EFG-Hermes Abu Dhabi index has risen 9.4 per cent as against a 9.8 per cent fall in the Dubai index.

"We believe the gap between the Abu Dhabi and Dubai indices is unlikely to close completely in the near term, but the second half of 2008 offers a chance for the Dubai index to outperform. For this, it is necessary for du to continue delivering strong results and more importantly, for Emaar to deliver stronger earnings growth, which we believe will occur as earnings from its international ventures kick in."

In Abu Dhabi, banking and insurance rose 1.14 per cent and 1.56 per cent respectively. Real estate gained 1.27 per cent, but the energy sector fell 1.05 per cent.

First Gulf Bank jumped 3.09 per cent to Dh25.05. Aldar Properties and Sorouh Real Estate Company rose 2.01 per cent and 0.94 per cent. All three energy firms - Dana Gas, Aabar Energy and Abu Dhabi National Energy Company declined.