(MENAFN - Khaleej Times) Union Properties jumped the most in more than four months on investor bets; Dubai's second-biggest publicly traded developer will get an earnings boost from a real-estate recovery.
Shares of the company known as UPP advanced 9.8 per cent, the most since September 22, to Dh1.79 at the close in Dubai. Volumes surged to more than four times the three-month daily average
The stock has soared 16 per cent since UPP said full year profit surged almost nine-fold. Deyaar Development rose 4.8 per cent after saying on Tuesday that earnings quadrupled
A resurgence in Dubai's real estate market, where prices had more than halved from their 2008 peak, has helped developers recover from the financial crisis. Construction activity has picked up as the Arabian Gulf business hub prepares to host the World Expo in 2020, with about 8 billion in infrastructure spending planned
"Fundamentally, UPP remains one of the key beneficiaries of growing investors' interest in Dubai's property market," Nayal Khan, head of institutional sales and trading at Naeem Holding in Dubai said in response to e-mailed questions
"On the earnings front, I expect 2014 to be a better year due to higher sales owing to new projects.
UPP said on January 20 that it will build more than 150 high-end homes and luxury villas with National Properties in Dubai
The developer reported on February 3 a full-year profit of Dh1.58 billion (430 million) compared with Dh175.8 million in 2012
The shares have climbed 50 per cent this year compared with a gain of 30 per cent for Deyaar and 15 per cent for Dubai's benchmark index