On Tuesday UAE’s stock markets outperformed in the region, all thanks to their blue-chip developers, while disappointing falling oil prices, corporate earnings, and dragged Saudi shares lower.
Oil slipped to an approximate of $63 a barrel on Tuesday as concerns worn down for now that rising tensions in the Middle East would intensify & hit oil supplies, compounding the impact of a weaker demand outlook.
The Dubai index closed up 2.1 percent to reach its highest since the mid of November 2018, with real estate shares leading the gains.
The largest listed developer of Dubai, Emaar Properties, jumped 4 percent & its unit Emaar Malls rose 4.6 percent. On Monday the realtor had ascended 2.5 percent when it struck a deal with Beijing Daxing International Airport over an $11bn project which is inclusive of residential and leisure facilities.
The Senior portfolio manager at Al Mal Capital, Vrajesh Bhandari, stated that the partnership between China and the United Arab Emirates seems to have fired up the real estate stocks.
Last week Emirates NBD added 1.7 percent, the biggest lender of the Emirates reported an 80 percent rise in the 2nd quarter net profit increased by the sale of a stake in Network International & strong non-interest income on foreign exchange gains.
The index was increased 0.9 percent in Abu Dhabi, continuing its winning streak for a 6th day.
Aldar properties jumped 6 percent to its highest as from January 2018, after the company raised its annual profit guidance by 50 percent for the coming 3 to 4 years.
Emirates Telecommunications Group climbed 1.6 percent after reporting a moderate rise in profit of the 2nd quarter, while National Bank of Ras Al Khaimah traded 4.4 percent higher after the lender reported a 25.7 percent increase in profit for the same period.