Dubai shares climbed to the highest in more than four months as the outlook for corporate earnings improved amid increased investor confidence after the FTSE Group listed the United Arab Emirates as an emerging market.
Arabtec Holding Co., the biggest construction company in the U.A.E., rose to a three-month high after Kuwait’s Global Investment House gave the company a “buy” recommendation. Aramex PJSC, the Middle East’s biggest courier company, advanced to a more than two-year high. The DFM General Index jumped 0.6 percent to 1,701.15 at the 2 p.m. close in Dubai, bringing the gain for the month to 14.6 percent.
“The inclusion of U.A.E. stocks in FTSE’s secondary emerging markets index has improved investor sentiment as we approach the earnings season,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the U.A.E.’s second- largest lender by assets. The rally was “spurred by the Dubai World agreement with creditors earlier this month and helped by the FTSE inclusion.”
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