Dubai stocks surged with real estate flying high on earnings, while Qatar Exchange jumped to its best day in a year after the Cabinet gave the go-ahead for foreigners to own the entire capital of publicly trading companies.
Dubai Financial Markets soared 1 per cent to trade at 2,599 points after real estate outperformed as investors received one more cue that property companies are returning to the growth path. Deyaar Development announced a surge in quarterly profits to Dh15.1 million, up from Dh2.6 million reported for the first three months last year. Its topline jumped 51 per cent to Dh149.2 million for the same period.
Higher demand forecast
The upbeat numbers from Deyaar followed Emaar Properties' announcement that its first-quarter sales more than doubled, though it has not as yet reported interim results. All real estate stocks moved up, with Emaar Development gaining 3 per cent, while Damac and Emaar Properties ticked up 2.5 per cent with Union Properties and Deyaar Development joining the rally at 0.8 per cent.
Climbing on foreign ownership
Qatar Exchange surged 2.6 per cent in what was its best single-day gain in a year after the country's cabinet approved a plan for non-Qatari investors to own 100 per cent of companies trading on the exchange. The government will also maintain central bank liquidity support for local lenders in the face of a second wave of the COVID-19 pandemic. Qatar Commercial Bank jumped 10 per cent and Qatar Islamic Bank advanced more than 7 per cent.
Abu Dhabi Securities Exchange edged up 0.3 per cent at 6,062 points with stocks from across the sectors making upward movements. The heavyweight lender, First Abu Dhabi Bank, provided the biggest boost followed by Etisalat that traded up 0.5 per cent. RAK for White Cement and Construction Materials soared 13.6 per cent after its board proposed 5 per cent of the capital in full-year dividend.
"Price touched intra-day 21-day moving average near 9,761.10, but failed to fill the gap between 9,635.34 and 9,762.37 points that has been open since March 30. Bullish momentum still prevails on the daily chart for the upcoming days and weeks, and with price retreating from overbought levels.
"Resistance levels are near 9,894.72 and 10,044.41, while support is near 9,802.22 and 9,761.10."
Result driven woes
Oman's 30-company index slipped 0.1 per cent at 3,711 points with Al Anwar Investment plunging 9.3 per cent after turning a loss-maker for the first three months of the year, while it had reported profits a year earlier. Al Batinah Power shed around 2 per cent as it continued to report quarterly losses.