06 Apr 2009
April 5 (Bloomberg) -- Arab shares advanced, led by banks and real-estate companies, after world leaders increased aid for economies and oil closed above $52 a barrel.Emaar Properties PJSC, the biggest real-estate developer in the United Arab Emirates, and Aldar Properties PJSC climbed to the highest in more than two months. Qatar National Bank SAQ, the country's biggest bank, advanced the most since March 24.
The Dubai Financial Market General Index rose 2.6 percent to 1,624.95, taking the two-day increase to 3.9 percent. Abu Dhabi's measure added 1.8 percent and the Doha Securities Market Index jumped 5.3 percent. In Egypt the EGX 30 Index surged 6 percent, the most in six months.
"Gulf markets continue to follow the strong performance of U.S. markets and oil remains resilient above $50 a barrel," said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd. "United Arab Emirates investors are looking at signs of the mortgage market beginning to pick up as banks such as HSBC start to confirm lending for certain developments."
Group of 20 leaders in London agreed to increase aid and spending as some government and industry reports suggested the pace of economic decline is easing. U.S. durable-goods orders and home sales rose in February, U.K. house prices unexpectedly advanced in March for the first time since October 2007, while Chinese manufacturing increased. U.S. stocks climbed for a fourth week, the longest stretch since 2007.
Crude oil for May delivery settled the week at $52.51 a barrel on the New York Mercantile Exchange. Oil added 13 cents last week, for a seventh consecutive gain. That's the longest stretch of increases since July 2007. Prices are up 18 percent this year.
Emaar, Aldar
Emaar gained 6.8 percent to 2.52 dirhams, the highest close since Jan. 7. Aldar, the developer of Ferrari branded theme parks in Abu Dhabi, added 9.4 percent to 3.25 dirhams, the highest since Jan. 15. Qatar National Bank added 7.7 percent to 102.1 riyals.
HSBC Holdings Plc's unit in the U.A.E. will offer home loans of as much as 75 percent of a property's value, up from 60 percent now, because "market conditions have improved," a spokeswoman said March 31. HSBC cut its loan-to-value ratio on mortgages in November after the global credit crisis hurt the U.A.E. economy and forced some employers to cut jobs.
Dubai hired investment bank N.M. Rothschild & Sons Ltd. to offer advice on managing a $20 billion fund that will support state-affiliated companies amid the crisis, it said April 2. Abu Dhabi, Dubai's neighbor and the country's capital, in February injected a combined 16 billion dirhams ($4.4 billion) into five banks of the emirate to buffer losses.
Oman's MSM 30 Index rose 2.7 percent and Bahrain's benchmark index advanced 0.1 percent. Saudi Arabia's Tadawul All Share Index added 0.7 percent in Riyadh, bringing the four-day gain to 8 percent. Kuwait's index gained 3.3 percent.
