Dubai

Dubai’s benchmark index recovered more than 1 per cent on Thursday as the previous day’s decline triggered bargain hunting among investors ahead of the Emaar Mall’s initial public offering from Sunday.

The Dubai Financial Market General Index jumped 1 per cent to end at 4,961.03, after losing 3.4 per cent in the previous session weighed by liquidation from investors inclined to invest in the mega IPO.

“It’s a rebound after excessive fall yesterday. The underlying concerns are still a drain on liquidity due to Emaar Mall’s IPO and general profit-taking after a recent run-up in markets,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi.

The developer of the world’s tallest tower will start selling at least 15 per cent of shares in Emaar Malls Group starting September 14, and list them in Dubai on October 2. The share sale is touted to be one of the biggest after the global credit crises of 2008, when many companies were forced to restructure debts and stall projects.

Arabtec, which declined 0.45 per cent, was the most active share by value, while Emaar Properties, whose mall unit’s IPO is slated for subscription from Sunday, rose 0.46 per cent.

“Emaar Properties is going to do quiet well, its time to pick up,” said an analyst, who wished not to be named. The analyst expected another 25 per cent rise in Emaar Properties in another 12-18 months.

On the index, out of a total of 31 shares traded on the exchange, shares of 24 companies rose, while shares of only 3 fell, while shares of the remaining 4 remained unchanged.

More upside

The Abu Dhabi general index may gain another 6 per cent by November. The general index rose more than 1 per cent led by financial services and real estate companies.

The Abu Dhabi General Index closed 1.26 per cent higher at 5,180.23 on Thursday, building on previous session’s 1.1 per cent gains.

“The market will go up to 5,500 by October or November,” said Osama Al Ashri, member of British Organisation, Society of Technical Analyst.

Among the top gainers were Oman and Emirates Investment Holdings, which gained 14.52 per cent, while Arkan Building Materials rose 8.57 per cent. International Fish Farming rose more than 7 per cent.

Out of a total of 33 companies, shares of 20 companies rose, while 7 of them decline, while the rest shares of 6 companies remained unchanged.