Dubai Trade News

Dubai Stocks Climb Most in Week on Expo Bets
Published on Monday, 11 November 2013 08:59
Dubai’s benchmark stock index rose the most in a week, led by engineering firm Drake & Scull, on bets the emirate will win a bid later this month to host the World Expo in 2020. Kuwait’s equity gauge also advanced.

The DFM General Index (DFMGI) gained 0.2 percent, the most since Oct. 31, to 2,903.3 at the close. Almost 786 million dirhams ($214 million) of shares were traded, compared with the 533 million-dirham daily average over the past year.

Kuwait’s index advanced 0.5 percent, while Abu Dhabi’s ADX General Index fell 0.1 percent.  

Speculation that Dubai will be chosen Nov. 27 to host the World Expo 2020 are helping sentiment amid signs the emirate's real-estate industry is rebounding. Emaar Properties PJSC (EMAAR), the builder of the world’s tallest skyscraper in Dubai, said last month that third-quarter net income rose 50 percent, beating analysts' estimates.

“A big catalyst for the market in the shape of the decision on Dubai’s Expo bid is at the end of the month,” Amer Khan, a Dubai-based director at Shuaa Asset Management, said in an e-mail. “The market is essentially also digesting the third-quarter earnings, which have overall been quite positive.”

Expo Expectations
Drake & Scull International PJSC (DSI), a Dubai-based provider of engineering services to the building industry, rose 5.7 percent to a record 1.31 dirhams. Emaar, whose 20 percent weighting is the heaviest in the index, climbed 0.3 percent to 6.1 dirhams.

Dubai’s economy, the second-biggest among the seven that make up the U.A.E., is set to expand an average 4.6 percent a year between 2012 and 2015, more than twice the rate of the previous four years, according to government forecasts. The emirate’s annual economic growth will be boosted by about 0.5 percentage points in the run-up to the Expo and by about 2 percentage points during the event should Dubai be selected, Bank of America Merrill Lynch said in a report Sept. 23.

In other countries in the region, Muscat’s measure advanced 0.2 percent, Qatar’s gauge was unchanged and Bahrain’s All Share Index lost 0.2 percent. Saudi Arabia’s Tadawul All Share Index slipped 0.2 percent.

Source: Bloomberg