Dubai’s DFM Lifts Index Despite Q2; UAE Property Stocks Rally
Dubai Financial Market, the Gulf's only listed bourse, helps lift the emirate's index to close at a 13-week high as investors shrug off weak quarterly earnings amid a property stocks rally. Qatar's main index hits a two-month high.
August 5, 2012 3:47 by Reuters
Shares in DFM rise 1.5 percent, extending their year-to-date gains to 19 percent. The exchange said its second-quarter profit fell 31 percent as revenues declined.
“It doesn’t matter what the revenues are – what matters in the short term is sentiment and expectations,” says Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. “There are expectations of better volumes at the moment. If DFMGI and Emaar are expected to continue higher, volumes will improve.”
Emaar Properties gains 1.2 percent, hitting a fresh 15-month high. The developer posted an estimate-beating second-quarter profit of 614 million dirhams ($167 million) last week, boosting sentiment in the property sector.
Dubai’s index rises 1.6 percent to 1,575 points, its highest close since May 3.
In Abu Dhabi, Aldar Properties gains 3.3 percent and Sorouh Real Estate climbs 1.9 percent. The Abu Dhabi index closes 0.1 percent higher at 2,511 points.
Money supply (M3) in the United Arab Emirates fell 3.2 percent year-on-year at the end of June,
marking its third decline in a row, central bank data showed on Su day.
Bank lending growth in the world’s No. 3 oil exporter accelerated to 3.2 percent in June, the highest annual rate so far this year, from 2.5 percent in May, the data also showed.
UAE MONEY SUPPLY END-JUNE 12 END-MAY 12 END-JUNE 11
M1 change yr/yr (pct) 8.4 8.1 13.1
M2 change yr/yr -2.9 -1.1 12.5
M2-M1 pct change yr/yr -8.0 -5.2 12.2
M3 pct change yr/yr -3.2 -1.3 12.4
Loans & advances yr/yr* 3.2 2.5 3.0
(Reporting by Martin Dokoupil; Editing by Andrew Torchia)