Dubai stocks advance on view earnings to top expectations
Monday, 4 October 2010
DUBAI, Oct 3 (Bloomberg): Dubai shares rose for the second time in three days, leading a rally in the Gulf, on investor speculation third-quarter earnings in the United Arab Emirates will beat expectations and after global markets advanced.
Emaar Properties PJSC, the developer of the world's tallest skyscraper, increased 0.8 per cent after its five-year convertible note sale received more than $3 billion in bids. Aramex PJSC, the Middle East's biggest courier company, advanced as much as 5 per cent. The DFM General Index gained 0.6 per cent to 1,694.03, at 12:16 pm in the emirate. The Bloomberg GCC 200 Index of Gulf stocks rose less than 0.1 per cent.
"Investors were positively affected by movements in global markets" as there were no declines Oct 1, said Waleed Al Khateeb, senior finance manager at Dubai-based Daman Securities LLC.
"There is some optimism as investors expect third-quarter earnings of heavy-weighted companies to impress."
Companies in the region are expected to begin announcing results this month, with Saudi Arabia starting this week. Gains of 15 per cent last quarter have left the 32 companies in Dubai's benchmark index valued at 6.56 times estimated earnings, data shows. That compares with 13.29 per cent for the MSCI World Index and 12.78 per cent for the MSCI Emerging Markets Index.
The Standard & Poor's 500 Index rose 0.4 per cent on Oct 1 as higher-than-estimated consumer spending and confidence bolstered optimism in the economic recovery. The MSCI Emerging Markets Index, which tracks developing-nation stocks, jumped 1 per cent Oct 1 after surging 17 per cent last quarter.
Emerging market stock and bond funds are attracting record investment this year as developing economies expand at a faster pace than the US and Europe, according to EPFR Global.
Oil for November delivery jumped 2 per cent to $81.58 a barrel on the New York Mercantile Exchange, the highest in almost two months, as China's purchasing managers' index in September gained at the fastest pace in four months, according to a report released that day. The six nations of the Gulf Cooperation Council supply about a fifth of the world's oil.
Emaar, which has the heaviest weighting in Dubai's index, climbed to 3.76 dirhams. The company received 250 orders from investors globally for a note sale. Emaar last week raised $450 million in the sale with an option to increase the size to $500 million.
Emaar Properties PJSC, the developer of the world's tallest skyscraper, increased 0.8 per cent after its five-year convertible note sale received more than $3 billion in bids. Aramex PJSC, the Middle East's biggest courier company, advanced as much as 5 per cent. The DFM General Index gained 0.6 per cent to 1,694.03, at 12:16 pm in the emirate. The Bloomberg GCC 200 Index of Gulf stocks rose less than 0.1 per cent.
"Investors were positively affected by movements in global markets" as there were no declines Oct 1, said Waleed Al Khateeb, senior finance manager at Dubai-based Daman Securities LLC.
"There is some optimism as investors expect third-quarter earnings of heavy-weighted companies to impress."
Companies in the region are expected to begin announcing results this month, with Saudi Arabia starting this week. Gains of 15 per cent last quarter have left the 32 companies in Dubai's benchmark index valued at 6.56 times estimated earnings, data shows. That compares with 13.29 per cent for the MSCI World Index and 12.78 per cent for the MSCI Emerging Markets Index.
The Standard & Poor's 500 Index rose 0.4 per cent on Oct 1 as higher-than-estimated consumer spending and confidence bolstered optimism in the economic recovery. The MSCI Emerging Markets Index, which tracks developing-nation stocks, jumped 1 per cent Oct 1 after surging 17 per cent last quarter.
Emerging market stock and bond funds are attracting record investment this year as developing economies expand at a faster pace than the US and Europe, according to EPFR Global.
Oil for November delivery jumped 2 per cent to $81.58 a barrel on the New York Mercantile Exchange, the highest in almost two months, as China's purchasing managers' index in September gained at the fastest pace in four months, according to a report released that day. The six nations of the Gulf Cooperation Council supply about a fifth of the world's oil.
Emaar, which has the heaviest weighting in Dubai's index, climbed to 3.76 dirhams. The company received 250 orders from investors globally for a note sale. Emaar last week raised $450 million in the sale with an option to increase the size to $500 million.