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UAE shares hit fresh multi-year high on property-related stocks

UAE shares hit fresh multi-year high on property-related stocks

Stock markets in the United Arab Emirates closed Monday on a high note, bolstered by shares in the real estate sector, as investors were injecting more cash in these stocks.

The Dubai benchmark stock index soared 2.9% to 4984.04, its best daily gain since January 28, and a fresh six year-high, buoyed by shares in Arabtec and Emaar respectively.

“Arabtec was the main booster to the main gauge in Dubai Monday, after the developer denied withdrawing from a Russian Project. Emaar also served as another supporter,” said Nabil Hyder, head of gulf research in Nemma Investment.

Shares in Arabtec rocketed 9.46%, its best daily gain since April 2012, as the developer confirmed that Arabtec Construction’s Russian Federation branch is on track with building the Gazprom tower in St. Petersburg.

A spokesperson from Arabtec confirmed that media speculations regarding the Company’s withdraw from the project due to the political turmoil in Ukraine are baseless.

Meanwhile, shares in Emaar soared 3.92%, as the developer’s general meeting is set to meet on April 23, to discuss the proposal of the Board of Directors regarding distribution of dividends to the shareholders amounting to 15% of the share capital being AED 15 fils per share as cash dividend, and 10 per cent bonus shares of the share capital of the company for the year 2013.

Emaar had recorded full-year 2013 net profit of AED 2.568 billion (US$ 699 million) and annual revenue of AED 10.328 billion (US$ 2.812 billion).

The banking sector index ticked up 0.24%, with shares in Dubai Islamic Bank and Emirates NBD advancing 0.31% and 0.53%.

“We could see a profit-taking streak in Dubai Tuesday, especially on the real estate related stocks,” said Nabil Hyder, head of gulf research in Al madina Investment.

Turnover stood at AED 2.94 billion, through the trade of 1.09 billion shares.

Elsewhere, shares on the Abu Dhabi bourse resumed rally Monday, buoyed by shares in Aldar Properties.

ADX, the main benchmark stock index, surged 1.01% to 5191.82 points, afresh multi-year peak.

“Aldar served as the main contributor to the market’s rally in Abu Dhabi Tuesday, after the developer announced a series of projects,” said Rami Sidani, head of gulf research at Schroders.

The company launched three major new residential developments in prime areas of Abu Dhabi, including in investment zones where property can be purchased by non-UAE nationals.

Off-plan sales for the three developments will commence in May and construction is scheduled to begin in 2015. The three developments have a combined gross development value of approximately AED 5 billion.

Shares in Aldar soared 4.54%, topping the most active by value and volume lists, and lifting the real estate sector index 3.63%.

The banking sector index edged 0.83% higher, with shares in First Gulf Bank gaining 0.87%.

Turnover hit AED 1.16 billion, while volume came in 382.8 million shares.