• Home
• /
• Local business

Dubai Shares Rise
on Mohammed’s
Bullish Comments

Dubai index mover Emaar Properties rose by 2.8 per cent to Dh4.33. Oil and power producer Abu Dhabi National Energy Company, also known as Taqa, went up by 2.9 per cent to Dh1.39, ahead of its third quarter earnings results due on Wednesday. The benchmark index of the Dubai Financial Market added 1.4 per cent to 2,153.77, while the main index of the Abu Dhabi Securities Exchange was steady at 2,944.79. “Shaikh Maktoum’s bullish comments about the economy was feeding into the markets, it affirmed that the recovery story remains intact,” said Ali Khan, managing director at Arqaam Capital Limited.

Shaikh Maktoum said at a conference in Dubai on Monday, that Dubai has weathered the worst of the credit crisis, and still has the strength to hurdle challenges. He also said that the second tranche of the emirate’s $20-billion bond will be well-recieved, the proceeds of which will be used to pay its obligations in the 
next few years.

Dubai has about $4 billion worth of debts maturing this year, including a $3.5 billion issue of government property developer, Nakheel.

With most international investors looking to close their portfolios for the year though, markets will continue to be range-bound until late in the year, while investors look for guidance from international equities, added Khan.

“We are also not fully out of the earnings season, so investors will start taking stock in a couple of weeks before taking new positions.”

Asian and European stocks rose on Monday, while Wall Street was expected to open higher after the Group of 20 concluded that global stimulus efforts would remain in place. At the G-20 meeting of finance ministers, member nations also decided to keep interest rates low in hopes of sustaining modest 
growth this year. Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes said that while markets have been consistently tracking international markets, the bourses here are in need of fresh domestic news flow that would push shares to recover from last week’s losses.

“Cash is still on the sidelines, and as we’ve seen in the past, it doesn’t take much of a reasons for investors to put it back to work. Gulf markets have been very shaky in the last week and have retreated to levels that offer good upside potential into the year’s end.”

Arabtec Holding, the UAE’s biggest construction company climbed by 2.9 per cent to Dh3.19. Investment bank UBS on Monday began coverage of Arabtec with a neutral rating and a target price of Dh3.40. It said it expected the company’s earnings to stay flat for the next 18 months.

In Abu Dhabi, First Gulf Bank added 2.9 per cent to Dh19. Property stocks were the day’s biggest gainers, led by Aldar Properties which edged up by 2 per cent to Dh5.60. 
—rocel@khaleejtimes.com