UAE markets surge on the first trading day of 2013 on positive global sentiment, with most bluechip stocks trading higher.
Dubai’s index ended 2.7 per cent higher at 1,667 points, its highest close since April 24. Real estate stocks were the biggest gainers. Union Properties surged 8.9 per cent and builder Arabtec added 7.1 per cent. Deyaar Properties rised 4.6 per cent.
“Markets are reacting positively after the deal signed in the USA regarding the fiscal cliff,” says Sebastien Henin, portfolio manager at The National Investor.
Another regional trader also said that global sentiment stemming from a resolution to the protracted “fiscal cliff” negotiations was lifting markets.
Property stocks also rised in Abu Dhabi, led by Sorouh Real Estate which advanced 4.8 per cent and Aldar Properties which added 3.9 per cent. Both firms are due to conclude negotiations for a possible merger in the near future, which the market is anticipating.
The broader index ended 1.8 per cent higher at 2,678 points.
Anticipation of strong fourth-quarter earnings at Bank Muscat lifted shares, outperforming the broader index which ended near-flat, after blue-chip come under selling pressure.
Bank Muscat ended 1.1 per cent higher, at 0.58 riyals, its highest close since May 8. The index ended near flat at 5,766 points.
Elsewhere, Saudi shares extended on Tuesday’s gains. Brent crude rose above US$112 per barrel to hit a one-month high on Wednesday as the US Congress approved a deal to avert a fiscal crisis. One regional trader said that the market is gearing up for earnings season, which is supporting stocks across the board.
The index rose 0.6 per cent to 6,899 points.
Other Gulf markets also rallied on strong global cues. Kuwait’s benchmark advanced 1 per cent to 5,994 points and Qatar’s index climbed 0.8 per cent to 8,429 points.
The UAE markets rose with gains across the board as positive global sentiment lifted stocks, and as property shares recovered from losses on Monday in response to the central bank’s introduction of caps on mortgage loans.
Bellwether Emaar Properties was up 1.3 per cent and contractor Arabtec also rose 1.3 per cent. Dubai Financial Market stock advanced 3.0 per cent.
Saudi stocks closed higher on Tuesday with gains in all sectors after oil prices edged up and the US Senate passed a deal to avert a “fiscal cliff” which threatened the world’s largest economy.
The bill has now been passed by both houses of Congress, helping Asian stocks to rise nearly 2 per cent to hit a five-month high on Wednesday.
In Abu Dhabi, Sorouh Real Estate jumped 4.0 per cent and Aldar Properties gained 2.4 per cent. There is speculation that a long-awaited announcement of terms of their planned merger may be made soon.
Elsewhere, Kuwait’s index rised, gaining 0.6 per cent to 5,972 points, while Qatar’s market closed almost flat.
Oman’s bourse added 0.2 per cent, extending gains made in the last several days, after the country said it would raise state spending by nearly 30 per cent from the original 2012 plan in its budget for the new year.
Bank Muscat, the country’s biggest bank, climbed 1.1 per cent.
Global markets breathed a huge sigh of relief on Wednesday after US lawmakers reached a budget agreement.
On Wall Street, the Dow Jones industrial average spiked over 250 points, or 1.9 per cent, to 13,362 an hour into the session, while the broader S&P 500 index rose 2.1 per cent to 1,455.
In Europe, the FTSE 100 index of leading British shares jumped 2.4 per cent to 6,041, its first foray above the 6,000 mark since July 2011. The CAC-40 in France rose 2.4 per cent to 3,728 while Germany’s DAX was up 2 per cent at 7,760.
Earlier, in Asia, Hong Kong’s Hang Seng index shot up 2.9 per cent to close at 23,311.89, its highest finish since June 1, 2011. Australia’s S&P/ASX 200 surged 1.2 per cent to close at 4,705.90, its best finish in 19 months while South Korea’s Kospi jumped 1.7 per cent to 2,031.10.
From: The Gulf Today