Dubai’s main stock index soared to the highest level since August 2015, extending year-to-date gains and supported by a jump in property-related shares.
The Dubai Financial Market General Index advanced 2.3% by the close on Monday after trading resumed following a four-day break, outperforming a rally in emerging-market stocks. Shares of Emaar Properties PJSC and Emaar Development PJSC were the biggest contributors to the gain along with Emirates NBD Bank PJSC, the city’s biggest bank.
The stock market in Dubai has benefited from both the recent spate of new listings “and a significant re-rating of the real estate names,” said Dahlia Sabaayon, senior investment analyst at Al Dhabi Capital. “Real estate data continues to deliver strong momentum, helping names like Emaar Development, which has also benefited from the reinstatement of its dividend.”
Home to the Burj Khalifa, the world’s tallest building that was constructed by Emaar, Dubai relies heavily on its real estate sector, which makes up more than a third of its consumer price index.
Having emerged from the global pandemic as an investment haven and a magnet for wealth and tourism, Dubai’s economy is set to grow 3% this year after an estimated 5% in 2022 and 6.2% the year prior, according to S&P Global Ratings.
Dubai’s real estate market has bucked the trend of falling prices amid surging interest rates seen elsewhere. S&P Global Ratings last month upgraded Emaar Properties a notch higher on “strong demand and improved pricing” in the sector.
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