DUBAI UAE shares rebounded strongly yesterday after bellwether stock Emaar Properties received a Â€˜buy' against its earlier Â€˜neutral' rating from Egyptian investment bank EFG-Hermes , which raised its 12-month target price to Dh10.1 from Dh6, a jump of almost 68 per cent. The share price of the region's biggest property developer surged the most in more than four months, climbing 6.32 per cent to end at Dh8.24. Dubai's benchmark stock gauge DFM General Index rose 3.23 per cent to 3805.16, almost erasing the loss of the previous two days. In the capital, the ADX General Index was up 1.28 per cent to 4585.81. "Our bullish stance is underpinned by the MSCI inclusion and exuberance around Expo 2020," analysts Jan Pawel Hasman and Kareem Ghaly wrote in a research note on Tuesday. "Emaar represents a pure exposure for many investors who want to play these two themes and the increase in liquidity is supporting asset price appreciation." The news about Emaar's target price being raised indicates there is a potential upside for the stock in the months ahead, said Tariq Qaqish , head of asset management and fund manager at Dubai -based Al Mal Capital . "The other thing, which is also an indication, is the fact of MAF ( Majid Al Futtaim ) reporting good numbers for retail," he said. "This would mean that Emaar also could deliver more positive numbers for the same segment." MAF recorded a 10 per cent increase in revenue last year, according to statement of the company on Monday. This positive recommendation comes on the back of Emaar launching its Rasha villa project in Dubai's Arabian Ranches on Sunday and the company appointing a new Group CEO on Monday. Abdullah Lahej , who led the project management division at Downtown Dubai , including Burj Khalifa, The Dubai mall, among others, took over from Low Ping . However, the correction seen in the local markets in the past two days that was in line with the global rout in equities does not necessarily mean the correlation is back. Emerging markets, especially their currencies, were the worst affected—which rebounded yesterday—since last Friday on concerns of the impact of quantitative easing of the US Federal Reserve and poor growth number from China . "I don't see correlation coming back to significant effect," said Qaqish. "At this stage, we are less correlated. Only if we see a big change in policies such as US Fed decisions or continued big drops or swings, definitely we will be going back to the correlation matrix." Sebastien Henin , portfolio manager of The National Investor thinks that " we shouldn't be exposed or only a minimum to this QE tapering. We have seen in the past quarters only small amount [being taken off the market due to tapering concerns]." "The forthcoming MSCI inclusion of UAE markets in the MSCI Emerging Market should encourage foreign asset managers to allocate big amount of money to the UAE market towards the end of the first half of the year," he added. The positive Emaar affect--the company has the biggest weight on the index-- rubbed off on all stocks, irrespective of whichever sector they belong to. Among the high turnover stocks in Dubai , Arabtec , Gulf Finance House , Union Properties , Dubai Islamic Bank and Deyaar Development gained 0.47 per cent, 1.97 per cent, 3.36 per cent, 6.21 per cent and 2.33 per cent respectively. In Abu Dhabi , Waha soared 8.32 per cent, while Aldar Properties and Ras Al Khaimah Properties closed 2.50 per cent and 2.61 per cent higher. Dana Gas rose 1.06 per cent.
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