Dubai real estate developer Emaar Properties rallied to its highest level since April 2011 yesterday, lifted by forecast-beating second-quarter earnings, but trading across the rest of the Gulf region was more mixed.

Shares in Emaar rose 4% to close at 3.37 dirhams a share after the developer said its quarterly profit more than doubled to Dh614mn ($ 167.2mn), as a one-off impairment cost was not repeated and retail and hospitality income grew.

Trading on Emaar accounted for more than a quarter of all shares traded on the index which rose just under 2% to a 12-day closing high.

“We saw a nice move in Dubai a few hours into the session... Emaar rallied above a key resistance of Dh3.33,” said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital.

“We’re now more optimistic that Dubai’s market will continue its upswing, but we remain slightly cautious given the low volumes. If the market holds its ground for a few more weeks, we may see a strong upward resumption post-summer.”
The Dubai index advanced 1.9% to 1,538 points.

Real estate stocks also lifted the Abu Dhabi index which ended 0.4% higher at 2,495 points. Aldar Properties and Sorouh Real Estate gained 0.9 and 2% respectively.

Saudi Arabia was also a gainer yesterday, closing up 0.8% at 6,823 points, as banks and petrochemical stocks advanced.

Heavyweight Saudi Basic Industries Corp (Sabic) rose 1.4%, outperforming the petrochemical index which increased 0.9%.

Egypt’s index was also slightly higher, rising 0.2% to 4,766 points, with investors holding off on building new positions until a new government is formed.

All other exchanges in the Gulf fell, with few catalysts to support buying activity.
Bahrain’s index fell nearly 1% to 1,099 points, dragged lower by Ahli United Bank which slid 1.7%. The lender, Bahrain’s largest by market value, reported a 3.7% rise in second-quarter profit yesterday but provisions grew 6% over the same period in 2011.

The Kuwait measure fell 0.4% to 5,728 points, while the Omani index dropped 0.2% to 5,365 points.