Dubai Shares Gain Most in Gulf as Real Estate Rallies: Inside EM

Dubai’s benchmark stock index advanced the most among Gulf peers as real estate shares extended gains.

The Dubai Financial Market General Index rose as much as 1.7%, up for a fifth day in its longest winning streak since March. The sub-index tracking Dubai-based real estate shares climbed as much as 2.7% on Sunday, reaching the highest level since November 2019. Those shares are trading higher amid a residential property price rally Morgan Stanley sees lasting for years.

Vaccinations are “helping a lot the reopening theme from an investment case perspective,” particularly in the United Arab Emirates and Saudi Arabia, Ali El Adou, head of asset management at Daman Investments in Dubai, said in an interview with Bloomberg TV. The UAE, a federation of seven sheikdoms including Dubai, has one of the highest inoculation rates globally.

“We’re still bullish, in terms of that theme, especially when we’re now talking about malls, real estate, airlines, logistics, so we’re still focusing on that,” he said.

Dubai Shares Gain Most in Gulf as Real Estate Rallies: Inside EM

Meanwhile, gauges in Abu Dhabi, Kuwait, Egypt and Israel notched gains while those in Saudi Arabia and Bahrain were little changed. Qatari and Omani shares declined.

HIGHLIGHTS
  • The MSCI Emerging Markets Index climbed 1.7% last week, the best weekly performance since early April
  • EM Review: Stocks Gain on Global Economic View, Dollar Weakness

MIDDLE EASTERN MARKETS:

  • Saudi Arabia’s Tadawul All Share Index ends little changed
    • Saudi Marketing 1Q Profit 4.26M Riyals Vs. 8.12M Riyals Y/y
    • Dar Al Arkan 1Q Profit 28.5M Riyals Vs. 12.4M Riyals Y/y
    • AlKhorayef 1Q Profit 26.9M Riyals
      • Stock falls 5.4%, down most since March
    • READ: Saudi Bank Asset Growth Is at Lower Yields, CoR Trend Uncertain
  • The Dubai Financial Market General Index climbs 1.3% to the highest level since Jan. 20
    • Emaar Properties +2.7%; Dubai Islamic Bank +1.9%; Dubai Investments +3.1%
    • CI Capital prefers Emaar Properties over its subsidiaries at current valuation as it offers “the most diversified exposure into all segments, including development, retail, and hospitality” as well as “the preferred play on the merger with Malls,” Sara Boutros and Marlene Milad write in a note
  • In Abu Dhabi, the ADX General Index trades 0.4% higher, up to a fresh high
    • First Abu Dhabi Bank +0.6%; Aldar +1.1%; Adnoc Distribution +1.9%
  • Kuwait’s Premier Market ends 0.2% higher after falling for the past three sessions
    • Agility Public Warehousing pushes index up most, rising 1.4%
  • ElSewedy rises as much as 9.2% in Cairo, the second biggest gainer by points among members of the EGX 30
    • Company managed to increase its backlog slightly to Q1, and its gross profit surged 56% in the period, Prime Group’s analyst Dina Abdelbadie writes in a note
      • “Thus, gross profit margin improved to 15.2% from 11.1%, thanks to higher volumes and prices in the wire & cable segment and higher prices of meters and transformers,” Abdelbadie (overweight) says, adding that the broker is positive on the stock

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