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Property shares lifts DFM, ADX

DUBAI — Dubai’s benchmark stock index on Sunday rallied by the most in more than two weeks, led by Emaar Properties PJSC after its chairman said the company doesn’t need Dubai government help as its India unit planned a share sale.

Emaar, the developer of the world’s tallest tower in Dubai, surged after its Indian unit said it will launch its $770 million initial public offering in 90 days, helping DFMGI rally from a two-week low. Emaar climbs 6.8 per cent to Dh4.06, its biggest one-day gain since March 25.

The Dubai Financial Market’s General Index, or DFMGI, rose 3.38 per cent to 1,824.97 points, the most since March 25. Out of 26 stocks traded yesterday, 21 companies posted gains, while two remain unchanged and three declined as 253.19 million shares worth Dh631.37 million were traded on the exchange.

“The rebound follows an aggressive sell-off and I think Emaar was a catalyst,” said Mohamed Kamal, a Prime Emirates equities trader.

“Regional sentiment is positive and the UAE markets should go up a little, but not too much — institutions are not participating because they are waiting on first-quarter results,” he said.

Emaar Properties, which makes up 26.5 per cent of Dubai’s stock measure, rose on the positive statements about the Indian unit IPO. Emaar MGF Land Limited, the Indian joint venture of the Dubai-based developer, plans to sell shares in an initial public offering in the next three months, executive vice chairman Shravan Gupta said on Thursday.

Separately, Emaar’s Chairman Mohammed Alabbar said that the developer is healthy and that it hasn’t pulled out of a tourism project in Indonesia. Alabbar said property prices in Dubai are stable and that Emaar will not need assistance from the government.

Arabtec Holding Company, the UAE’ biggest construction company, rallied 6.3 per cent to Dh2.70, the most since March 30. Union Properties rose 2.28 per cent to 0.49 fils.

In banking sector, Emirates NBD, the region’s biggest bank, advanced 3.42 per cent to Dh3.02 while Dubai Islamic Bank gained 2.98 per cent to Dh2.42.

“There is value in the region as a whole and definitely in the UAE,” said Ibrahim Masood, a Dubai-based fund manager at Mashreqbank PSC, who helps manage about $400 million.

ADX climbs 0.86 per cent

Abu Dhabi Securities Market’s General Index, or ADXGI, climbed 0.86 per cent to 2,847.68 points as property shares staged strong recovery.

Aldar Properties surged 4.31 per cent to Dh4.60 and Sorouh Real Estate rose 4.18 to Dh2.49.

On negative side, Sharjah Islamic Bank declined 3.06 per cent to Dh4.50 and First Gulf Bank dropped 0.28 per cent to Dh18.05.

In terms of value and volume, Dana Gas remained a most active share on ADX as its Dh33.47 million shares worth Dh30.75 million changed hands in thin trade. Aldar Properties and Sorouh Real Estate were the other active shares on the exchange. 
— muzaffarrizvi@khaleejtimes.com