UAE markets rise at yearend

Dubai : United Arab Emirates stock markets rose yesterday, their last day of trade during a year in which they were among the world’s worst-performing emerging markets, while most other Middle Eastern bourses also gained.

Dubai’s stock index fell 4.6 per cent during 2017 while Abu Dhabi’s index lost 3.3pc; MSCI’s emerging markets index gained about 34pc.

Some fund managers expect a better 2018; regional growth is likely to pick up on the back of expansionary state budgets, as the partial rebound of oil prices late this year gives Saudi Arabia and Abu Dhabi room to loosen austerity policies, and Dubai spends heavily to prepare for hosting Expo 2020.

The Dubai index rose 0.7pc yesterday, buoyed in part by construction firms that could benefit from higher government spending on infrastructure next year.

Drake & Scull rose 2.7pc to 2.26 dirhams in heavy trade. It posted a big third-quarter loss but investors are hoping for much better fourth-quarter results now that a recapitalisation has been completed, which may help it obtain operating funds.

Some analysts believe the stock, which has jumped from around 1.70 dirhams in mid-November, is overvalued, however; earlier this month, Deutsche Bank cut it to “sell” from “hold” with a 1.13 dirham target price.

Builder Arabtec gained 0.9pc after saying a unit had won a 1.025 billion dirham ($279 million) contract from Dubai Properties, part of the investment vehicle of Dubai’s ruler, for work on a residential community.

Dubai property developers were also strong, with blue chip Emaar Properties climbing 2.4pc.

Abu Dhabi’s index added 0.7pc, helped by companies which could benefit directly from this week’s surge of oil prices: Dana Gas rose 2.5pc and fuel distributor ADNOC Distribution gained 1.5pc.

Most other Middle Eastern stock markets will trade for the last time in 2017 on Sunday. In Saudi Arabia, the index rose 0.4pc yesterday as most petrochemical firms stayed strong in the wake of the oil price
increase.

Sahara Petrochemical jumped 3.6pc after proposing a dividend of 1 riyal per share for 2017, up from 0.75 riyal for 2016.

Al Samaani Factory Metal Industries soared 9.5pc after proposing a capital increase through a bonus share issue, and an annual dividend of 1.5 riyal per share.

Qatar’s index rose 0.3pc as Vodafone Qatar, which shot up by more than a third between mid-November and the start of this week, resumed rising in volatile trade and closed 0.9pc higher.