Dubai shares climbed for a third day led by gains in telecommunications companies after Emirates Integrated Telecommunications Co. said it will pay lower than expected royalties to the government.
Emirates Integrated, the United Arab Emirates’ second- biggest phone company known as Du, increased to the highest since November 2009. Emirates Telecommunications Corp. climbed as much as 1.4 percent in Abu Dhabi. Dubai Islamic Bank PJSC, the U.A.E.’s biggest Shariah-compliant lender, advanced 1.8 percent. The Dubai Financial Market General Index rose 0.5 percent to 1,614.97 at 12:21 p.m. in the emirate. The ADX General Index gained 0.4 percent to 2,721.11.
“Telecoms are buoying the U.A.E. markets with the lead being set by Du in Dubai and Etisalat in Abu Dhabi,” said Shehzad Janab, asset management head at Dubai-based Daman Investments PSC, which manages more than 5.5 billion dirhams ($1.5 billion). The government cutting of the Du royalty fee implies a release of anywhere between 400 million and 500 dirhams, which is leading positive momentum as sell-side analysts factor in the earnings impact, he said.
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