Union Properties shares soared 15 percent on Sunday on talk it had been granted state lands to develop, helping send the Dubai bourse above 1,000 points for the first time, traders said. Amlak Finance, a leading mortgage lender in the United Arab Emirates, surged nearly 13 percent to 13.65 dirhams ($3.71) on expectations of strong second-quarter results, they said.
The Dubai stock market index climbed 5 percent for the day, briefly touching 1,000 points before ending at a record closing high of 997. Union Properties officials said they planned no announcements that could have affected their share price, and declined to comment on talk of land grants.
Union Properties closed at 9.40 dirhams after heavy trading, with 35 million shares changing hands, against a 30-day average volume of 4.5 million shares.
UAE companies are due to report second quarter earnings in early July, with most investors expecting strong profits growth, fuelled by high oil prices and a booming domestic economy.
Sidani said shares in Union Properties and Amlak appeared expensive at current valuations, with both companies' shares trading at a multiple of over 100 times forecast earnings (PE ratio), according to Shuaa Capital forecasts.
Shares in heavyweight Emaar Properties rose 6.3 percent to 32.20 dirhams on talk that it would sell its Dubai Bank subsidiary to state-owned Dubai Holding. Emaar declined to comment on the speculation.
Shares on the sister bourse in Abu Dhabi closed flat at 5,733 points on thin trading, traders said.
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