The Dubai stock market outperformed its Gulf counterparts on Thursday, closing with gains for the fifth straight week, while the Abu Dhabi index reached a level record.
Dubai’s leading market index grew 1.1%, supported by a 2.5% rise in Emirates NBD share, and a 4.8% jump in Air Arabia’s share, after being returned to profitability in the third quarter.
Leading Emaar Properties added 0.4%, after the company said all conditions for the merger with its unit, Emaar Malls, had been met.
Emaar Malls shares are up 0.8% and trading will be suspended from November 16.
In March, an agreement was announced all-share to make Emaar Malls a wholly owned subsidiary of Emaar Properties.
Shares of Union Properties were up 5.1%, becoming the largest gain on the index, offsetting some of its losses during the previous session, which amounted to nearly 10%.
The company said on Tuesday that its chairman, Khalifa Hassan Al Hammadi, was removed from the board after revealing an order from the UAE prosecutor’s office to arrest him.
The official Emirati news agency reported that the UAE Attorney General announced in October an investigation into allegations of financial violations involving the head of Union Properties and other company officials.
The main index in Saudi Arabia was up 0.4%, supported by SABIC’s share increase for agricultural nutrients by 4.9%, and the closing of Saudi National Bank’s share, up 1.5%.
The Saudi stock market is supported by solid domestic economic fundamentals in one moment in which the market is recovering from the latest price corrections. However, Wael Makarem, a market analyst senior of Exness, said the Saudi stock exchange in Tadawul is still vulnerable to further drops in oil prices as consuming countries seek to reduce prices.
Shares of Jabal Omar Development Company fell 0.8% after expanding the extent of the third quarter’s losses.
The company attributed these results to tax provisions and higher expenses after the expiration of the pandemic-related exemptions on some financial fees.
In Abu Dhabi, the index rose 0.7%, hitting an all-time high, with the share of the telecommunications company in increase of 1.5%.
Abu Dhabi has proposed a regulatory framework to allow companies to be listed in development phase, which could open the door to a large number of Gulf region-focused deals that include special acquisitions.
The Qatar index gained 0.2%, while Commercial Bank gained 0.7%.
Outside the Gulf region, Egypt’s leading equity index closed 0.8% higher, supported by the rise in most of its shares.
Makarem said investors remain optimistic about the market’s potential.
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