Dubai stock market touches eight-month high

Stock markets in the UAE outperformed the region on Tuesday thanks to their blue-chip developers, while disappointing corporate earnings and falling oil prices dragged Saudi shares lower.

Oil slipped to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook.

The Dubai index closed up 2.1 per cent, to reach its highest since mid-November 2018, with real estate shares leading the gains.

Dubai’s largest listed developer Emaar Properties jumped 4 per cent and its unit Emaar Malls surged 4.6 per cent. The realtor had jumped 2.5 per cent on Monday when it struck a deal with Beijing Daxing International Airport over an $11bn project that includes residential and leisure facilities.

“The UAE-China partnership seems to have fired up the real estate stocks,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.

Emirates NBD added 1.7 per cent. Last week, the emirate’s biggest lender reported an 80 per cent rise in second-quarter net profit boosted by the sale of a stake in Network International and strong non-interest income on foreign exchange gains.

In Abu Dhabi, the index was up 0.9 per cent, continuing its winning streak for a sixth day.

Aldar properties leapt 6 per cent to its highest since January 2018, after the firm raised its annual profit guidance by 50 per cent for the next three to four years.

Emirates Telecommunications Group climbed 1.6 per cent after reporting a slight rise in second-quarter profit, while National Bank Of Ras Al Khaimah traded 4.4 per cent higher after the lender reported a 25.7 per cent surge in profit for the same period.

In Saudi Arabia, the main index Tadawul fell 1.3 per cent, sliding for a fourth straight day, with the country’s largest lender National Commercial Bank shedding 1.8 per cent and heavyweight Saudi Basic Industries declining 1.5 per cent.

Saudi Arabian Mining Company (Ma’aden) plunged 4.6 per cent after it swung to a second-quarter loss, which it blamed on falling average realised prices of all products except gold.

National Shipping Company of Saudi Arabia (Bahri) dropped 4.8 per cent after it reported a 75 per cent fall in second-quarter profit.