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Dubai Rises to Two-month High; 
Etisalat Pushes ADX to New Peak

DUBAI — Emaar Properties led Dubai market to a seven-week closing high as speculators buy ahead of an announcement on Dubai World’s debt restructuring deal.

Emaar, the developer of the world’s tallest skyscraper in Dubai, rose 3.56 per cent at Dh3.49, its highest close since January 14. Dubai Financial Market, the bourse operator, gained 4.44 per cent at Dh1.66, as investors bet this week’s spike in bourse volumes will translate into higher revenues for the firm.

The Dubai Financial Market’s General Index climbed 1.5 per cent to 1,684 points, the highest close since January 18. Out of 31 stocks traded yesterday, 17 posted gains, while six remain unchanged and eight declined as trading volume surged to 430 million shares.

“Expectations are that “Dubai World terms will be more benign than first feared,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd.

“This would be positive for sentiment and positive for volumes. Investors can put this matter behind them, and focus once again on fundamentals.”

Drake & Scull climbed 3.5 per cent after winning contracts worth Dh484 million, Drake said in a statement on the bourse website.

Global Investment surged 7.25 per cent to Dh1.48 and Shuaa Capital advanced 3.39 per cent to Dh1.22. Emirates NBD and Dubai Islamic Bank also rallied and closed up 1.62 per cent and 0.83 per cent, respectively.

“People want a resolution (on Dubai World) so they can start doing some fundamental analysis,” said Keith Edwards, head of asset management at Doha-based investment company The First Investor.

Dubai’s benchmark stock index has lost 20 per cent since November 25, when Dubai World said it would seek to delay repaying debt.

National Central Cooling Company, also known as Tabreed, fell 2.04 per cent at 0.48 fils. Gulf Finance House also declined 1.04 per cent at 0.95 fils.

ADX at 15-week High

Abu Dhabi Securities Exchange’s General Index reached a fresh 15-week closing high as market heavyweight Emirates Telecommunications Corporation, also known as Etisalat, extended gains.

Etisalat rose 1.2 per cent to a five-month high and taking its gains to five per cent since it proposed a cash dividend.

The ADX’s benchmark index rose 0.2 per cent to 2,833.36 points, its highest finish since November 25, buoyed by expectations for an imminent announcement from Dubai World on its multi-billion dollar debt restructuring. Index volumes remained light at 83.53 million shares.

“The speculation will not be enough to draw in international investors, they would rather sit on the sidelines until something definite is announced,” said Edwards.

In terms of value, Aldar Properties remained a most active share on ADX as its Dh86.84 million shares changed hands in thin trade. In terms of volume, Sorouh Real Estate remained on top as its 24.69 million shares were traded on the exchange.

muzaffarrizvi@khaleejtimes.com