Dubai Shares Rise as Salama Posts Profit; Kuwait Gains on Rates

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Dubai shares rebounded from yesterday’s decline as Islamic Arab Insurance Co. said it returned to profit in 2009. Kuwait’s index rose after the central bank reduced interest rates.

Islamic Arab Insurance, known as Salama, jumped the most in almost two months after it reported earnings for the year after a loss in 2008. Dubai Islamic Bank gained as the lender signed an agreement with the Ministry of Finance. Emaar Properties PJSC, which has the biggest weighting in Dubai’s index, pared some of yesterday’s losses. The Dubai Financial Market General Index gained 0.9 percent to 1,645.48 at 12:34 p.m. in the emirate. The Kuwait Stock Exchange Index advanced 0.4 percent to 7,132.5, the highest in three months, after the central bank cut interest rates by half a percentage point to boost economic growth.

“The market is still unstable because Emaar has yet to publish its earnings,” said Kifah Maharmeh, general manager at Abu Dhabi-based Al Dar Shares & Bonds. Kuwait’s rate cut “will most likely be positive for the medium term, as it will encourage more liquidity into the market.”