Property Select

• Home
• Property Search
• News
• About Us
• Contact

DUBAI PROPERTY STOCKS SURGE TO NEW HIGH IN 2009

Wednesday, 07 Jan 2009

On Monday, U.A.E. shares rose during the first day of trading, and Dubai property stocks led the way, following foreign market gains. Improving oil prices also helped. The benchmark index of Dubai’s bourse rose over 8% during the day’s middle session, which represented its best gain in a single day in over 7 weeks. Shares of the largest property developer in the Middle East, Emaar Properties, increased 14.6%.

EFG-Hermes’ managing director of cash and equity-linked trading, Matthew Wakeman, says, “Markets in the UAE today have been helped by the positive start to the year in global markets and the rally of oil from recent lows. But sentiment is certainly shifting and looking for opportunities.” The Dubai Financial Market index fell 72.4% last year, due to a fall in the confidence of investors in property in Dubai. Arqaam Capital’s executive director, Ali Khan, says, “It was an encouraging start with plenty of positive leads for the UAE markets to follow. However, it is too early to assume the worst is over.”

Recent stock market sessions saw foreign markets climbing, and stocks in Asia had good gains for the eighth day in a row, based on the hope that the flood of tax and interest rate cuts, as well as other rescue efforts, will soften the blow of the international financial turmoil. The U.A.E. and Dubai property markets’ gains are expected to continue for several days while many investors take on fresh positions in anticipation of the new earnings’ season that begins in the next couple of weeks.

Stocks of property in Dubai, which suffered considerably due to the worldwide financial woes when cash flow ceased, was a leading component of the recovery, and Deyaar Development rose 14%. The firm’s spokesperson says that it is going to re-evaluate its future and past Dubai accommodation development projects.