Property stocks up as Dubai extends rise

Emaar Properties, which is forecast to report a quarterly profit of Dh968 million according to analysts polled by Reuters, climbs 1.9 per cent, while builder Arabtec adds 0.6 per cent and Deyaar edges up 0.3 per cent.

Analysts say these gains are not sector-specific, but because these are usually the most traded shares and so tend to under- and out-perform the market.

Dubai Financial Market, which is forecast to post a 77 per cent fall in second-quarter profit, climbs 1.4 per cent to trim its year-to-date decline to 20 per cent.

The index rises 0.5 per cent to 1,507 points.

"We are trending more towards the bullish side and the global indicators are giving a good signal," says Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.

"The markets should begin on a positive note and may continue to hold up for the rest of the week."

Abu Dhabi stocks are mixed as index trades flat at 2,528 points.

Saudi Arabia's benchmark climbed 2.4 per cent on Saturday after some banks and industrial stocks posted upbeat quarterly earnings.

Global stocks rose on Friday, recording their best week in nearly a year, while oil prices climbed on hopes that US companies will report strong earnings next week.

Bank Muscat leads Oman's index to a three-week high as above-forecast earnings from some Saudi banks draws buyers to Oman's largest listed lender.

Bank Muscat climbs 2 per cent, taking its gains to 6.3 per cent in a week.

"In the short term investors will be occupied with the Q2 reporting season which might improve risk appetite," says Ajeev Gopinath, associate vice president for asset management at Gulf Baader Capital Markets in Muscat.

"Initial earnings releases from Qatar and Saudi are positive. For regional markets, we do not foresee any major downside revision in core sector earnings for current year.

"This calls for an upside in regional equities from recent corrections, assuming outlook for global growth remain stable."

Oman national Investments Co climbs 0.7 per cent and is the most active stock on the index. The index rises 0.3 per cent to 6,249 points, its highest level since June 22.

Middle East markets are seen opening higher on Sunday as end-of-week gains on international bourses and an upbeat start to the regional earnings season boosts sentiment.

Saudi Arabia's index climbed 2.4 per cent on Saturday, its biggest rise for a month, after some banks' earnings beat analyst forecasts.

"Second quarter results were expected to be better than Q1, so that doesn't come as a big surprise," says Haissam Arabi, ief executive and fund manager at Gulfmena Alternative Investments.

"Markets were worried more about the macro factors and with that subsiding, we can now look more at the fundamentals."

Global stocks rose on Friday, recording their best week in nearly a year, with the MSCI world equity index gaining more than 5 per cent -- the highest since the 6.6 per cent increase recorded in the week ending July 18, 2009.

Oil prices topped $76 per barrel on demand optimism, posting the biggest weekly increase since late May after a choppy low volume trading session.