Dubai's measure rose to a one-week high on Monday, extending gains as investors flocked to property stocks while all other regional markets also gained. Dubai's Emaar Properties, the exchange's largest listed stock by market value, rose 1.6 percent to a fresh 52-week high.
Investors are buying into Emaar to benefit from a tentative recovery in real estate prices in the country. A lack of alternative investment opportunity in the sector is also supporting the stock. Emaar shares have risen 50.1 percent this year alone, prompting concern the stock is due for a pull back. Deyaar Development jumped 6.8 percent. The mid-cap is a usual target for local retail investors. Courier Aramex advanced 4.2 percent.
The emirate's index climbed 1.1 percent to its highest close since March 3. "There is a bit more retail interest spreading into smaller names. But what has been driving the market is foreign interest in Emaar - it's hard to go against the trend," said Anastasios Dalgiannakis, institutional trading manager at Mubasher.
Abu Dhabi's measure added 0.4 percent, extending gains since Thursday's two-week low. In Qatar, the benchmark advanced 0.3 percent to its highest close since February 26. The market has been trading within a tight range in recent sessions. Qatar Telecom climbed 1.6 percent. Shares in Qatar Gas Transport rose 3.1 percent after the company approved a cash dividend of 1 riyal ($0.27) per share, higher than an anticipated 0.85 riyal payout.
Elsewhere, Egyptians bought back battered shares, helping lift Cairo's index by 0.2 percent. The market rose for a fourth consecutive session since slumping to an 11-week low last Tuesday. Shares in Telecom Egypt edged up 0.6 percent, despite posting a 12.8 percent drop in 2012 profit.
Egyptians were net buyers against other Arab sellers but investors remain concerned about a currency crisis and a deteriorating economy amid a negative political backdrop. In Saudi Arabia, the index advanced 0.2 percent, up for a third session in four, but the market is trapped in a tight trading range. The petrochemical sector supported gains with Saudi Basic Industries Corp (SABIC) up 0.5 percent and Saudi Kayan Petrochemical added 0.4 percent.
The kingdom's two heavyweight sectors, banks and petrochemicals, have been largely ignored by investors after fourth-quarter earnings. Elsewhere, Kuwait's measure rose 0.6 percent to a fresh 25-month high and saw its eleventh straight gain. Small-caps dominated trade as retail investors look for high-liquid stocks to trade, which are easier to enter and exit.
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