DUBAI, June 11 (Reuters) – Dubai’ stock market may be vulnerable to profit-taking by retail investors on Thursday, especially if oil prices which have supported its rally in the last two sessions, dip further.
The emirate’s index has jumped 4.3 percent in the two previous days as some stocks surged on speculative buying.
The rally was mainly led by mortgage lender Amlak Finance , which had more than doubled since trading in the stock resumed on June 2 after a six-year suspension during which it restructured debt.
The company said in a bourse statement on Thursday it was unaware of the reasons behind the share price increase and analysts have described it as a momentum play not based on fundamentals.
Dubai builder Arabtec has gained 27 percent in two days, supported by speculation that it will soon finalise a giant development project in Egypt. Arabtec said on Thursday that no developments requiring disclosure had taken place at the company.
Dubai’s rally followed a rebound in oil prices this week, but crude futures have edged down in Asian trade on Thursday after the World Bank cut its global economic growth forecast.
This may prompt investors to book profits in the absence of other positive catalysts.
Other Gulf markets’ gains on the oil rally have been modest and Qatar’s bourse has largely ignored it, with investors still worried about the fate of Doha’s winning bid to host the 2022 soccer World Cup after the start of criminal investigations over alleged corruption at world soccer body FIFA.
FIFA postponed the bidding for the right to host the 2026 World Cup on Wednesday and Swiss authorities took possession of computer data from the organisation that a source said included records from the office of its President Sepp Blatter.
(Reporting by Olzhas Auyezov; Editing by Anand Basu)