UAE shares advance led by cement makers

Posted on: May 30, 2008

Written by Select Property

Ras Al Khaimah Co. for White Cement & Construction Materials rose to its highest in more than two years. Umm Al Quwain Cement Industries Co. and Gulf Cement Co. also gained.

Union Properties, the Dubai-based real-estate developer that's building F1-themed parks, advanced for a third day.

The Abu Dhabi Securities Exchange General Index added 0.8 per cent to 5,037.85, while the Dubai Financial Market General

Index rose 0.2 per cent, gaining for a third day. "Cement companies are extremely attractive because of soaring demand for properties and the shortage of cement

makers,'' Mohamed Salem, a trader at Al Futtaim HC Securities, said in a telephone interview from Dubai.

The ADX Construction Index, a measure of 10 construction companies, trades at an average of 12 times trailing earnings,according to data compiled by Bloomberg. That compares with a multiple of 15 for ADX General Index. The ADX Construction Index rose 3.7 per cent.