Emaar rallies to lift Dubai bourse

Emaar Properties rallied to lift Dubai's index to a higher close as speculators targeted beaten-down stocks. Emaar climbed 3.9 per cent, rising for the fourth consecutive session. Dubai Financial Market added 3.2 per cent and Union Properties surged 5.5 per cent. "These are stocks that have been hardest hit in the crisis and this is pure speculation," said Wadah al-Taha, a Dubai-based financial analyst. "When the traded value is low, it's easier to play with stocks and give the impression they are moving in a certain direction, before sudden profit-taking strikes to take them back to previous levels. It's a pattern repeated every 10 days or so." The index ended up 1.9 per cent at 1,769 points, its fourth straight day of gains. Taha said he expected stocks to correct by the end of the week. "This momentum can't be maintained," he added. Meanwhile, Abu Dhabi's index reached a four-week closing high, buoyed by gains in property stocks. The benchmark climbed 0.2 per cent to 2,681 points, its fourth straight daily rise. Aldar Properties and Sorouh Real Estate added 1.5 and 1.9 per cent respectively. "They fell the most in the market downturn and so traders are targeting these stocks to try and push them higher and make a quick profit," said Taha. National Bank of Abu Dhabi rose 5.3 per cent, but First Gulf Bank plunged 4.4 per cent. Their combined volume was 353,000 shares. "People are speculating on second-quarter results and there are maybe some rumours about these banks' performance," said Taha. "It seems many UAE banks have exposure to Saad and Algosaibi, but the information from lenders is very vague, with little clarification provided," he said. He said these worries were making investors hesitate and were exacerbating the slow summer trading. Troubled Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi Bros are restructuring billions of dollars of debts. Last month, the UAE central bank governor said UAE banks had 'significant' exposure to the two groups, with all Gulf Arab countries exposed. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .