DUBAI, Feb. 4(Reuters) - Investors in the United Arab
Emirates shrugged off weak earnings from Aldar Properties
and the country's two markets rallied as confidence in
local equities supported buying.
Dubai's measure climbed 0.9 percent to head back
towards Thursday's 37-month high.
Emaar Properties helped lift the market, gaining
1.7 percent, while Arabtec rose 3.1 percent. Dubai
Islamic Bank added 0.9 percent ahead of its earnings,
which are due out later on Monday.
Dubai's market jumped 20 percent in 2012 as property prices
recovered and lifted sentiment towards the sector's stocks.
"There's no doubt that there has been a lot of capital flow
in real estate, especially from foreigners," said Amer Khan,
fund manager at Shuaa Asset Management.
"What you're seeing on the ground is being reflected in the
market so a pullback would not be too strong. This is long-term
money and there's no reason for a reversal."
The market however, is stretched technically and some stocks
are overbought, he added.
On neighbouring Abu Dhabi's market, Aldar Properties fell
4.2 percent after its fourth-quarter earnings missed estimates
despite a 9.8 percent increase over 2011. Aldar is still up 7.8
percent in 2013, after a 39-percent surge in 2012.
"From an earnings perspective, it's not a phenomenal story
but that has been the case for many years so it is not a
surprise," Khan added.
The firm's performance dragged Sorouh Real Estate,
which is in the process of merging with Aldar, down 2.3 percent.
Sorouh has gained 36.5 percent in 2013 on merger hype.
The emirate's index however, closed 0.3 percent
higher at a fresh 34-month high as banks supported.
First Gulf Bank gained 1.6 percent and National
Bank of Abu Dhabi added 0.5 percent.
In Egypt, the bourse rallied to a three-week high as foreign
investors brushed off political unrest and bet domestic strife
will ease.
Large-caps supported gains. Telecom Egypt rose 2.5
percent, Orascom Telecom climbed 2.2 percent and
Commercial International Bank added 0.8 percent.
Cairo's index advanced 1 percent to its highest
close since Jan. 10.
The death toll in Egypt rose to 57 on Sunday in the
bloodiest week of President Mohamed Mursi's seven months in
power. But non-Arab foreigners were net buyers on Monday, said
exchange data, as some bought on hopes the turmoil will ease.
Shares in Orascom Construction Industries (OCI)
edged up 0.04 percent. Egyptian construction and fertiliser firm
OCI NV, newly listed in the Netherlands, said 93.3
percent of global depository receipt (GDR) holders in parent
firm OCI agreed to swap them for OCI NV shares.
OCI will delist after the remaining shareholders accept an
offer to exchange their shares to those of OCI NV or sell them
for the offered price of 280 pounds in cash.
Investors are moving to other liquid stocks that will lead
the market after OCI - the largest by market value - delists.
"Egypt is losing OCI - it's not a good point for the
market," said Sebastien Henin, portfolio manager at The National
Investor. "Unfortunately there are no IPOs in the pipeline.
Liquidity will decrease a little bit."
Investors will look to other stocks such as Orascom Telecom,
Telecom Egypt and CBI, he added.
Elsewhere, Saudi Arabia's measure slipped 0.1
percent as petrochemical and banking shares weighed. Saudi Basic
Industries Corp (SABIC) and Al Rajhi Bank
slipped 0.8 and 0.7 percent respectively.
MONDAY'S HIGHLIGHTS
DUBAI
* The index rose 0.9 percent to 1,865 points.
ABU DHABI
* The index gained 0.3 percent to 2,890 points.
EGYPT
* The index climbed 1 percent to 5,749 points.
SAUDI ARABIA
* The index declined 0.1 percent to 7,025 points.
QATAR
* The index eased 0.01 percent to 8,725 points.
KUWAIT
* The index gained 0.6 percent to 6,310 points.
OMAN
The index advanced 0.5 percent to 5,813 points.
BAHRAIN
* The index eased 0.05 percent to 1,085 points.