Dubai: UAE stocks continued to rise on Wednesday as investors bet that a new companies law could lead to more initial public offerings (IPOs) this year and next and thereby a surge in the markets. UAE’s Minister of Economy, Sultan Bin Saeed Al Mansouri, said a day earlier that the government is going to approve a new law soon.
An indication of such buoyant mood among the investors was evident as shares of investment bank Shuaa Capital jumped the most in Dubai, closing 14.68 per cent higher at Dh1.25. In the event of fresh IPOs, Shuaa Capital will be a major beneficiary.
“There are rumours about more and more IPOs coming back to the market and for Shuaa it’s their core business,” Sebastien Henin, portfolio manager at The National Investor told Reuters yesterday.
The Dubai Financial Market General Index added 0.87 per cent to end at 4383.20 as real estate and telecom companies were the major gainers.
The real estate index was up 1.54 per cent and telecom index rose 2.71 per cent. The turnover on 677.86 million shares traded stood at Dh1.36 billion. Of the 30 stocks traded, 15 advanced, 11 retreated and four remained unchanged.
Union Properties, Arabtec, Emaar Properties and du were up 3.77 per cent, 2.82 per cent, 0.82 per cent and 2.71 per cent respectively. Dubai Investments increased 0.82 per cent to Dh3.70. Deyaar Development remained flat at Dh1.34.
Shares of Taqa, the Abu Dhabi National Energy Company, declined for the second straight day after its losses were announced on Tuesday. The company shares lost 3.97 per cent to Dh1.21, taking its two day decline to almost 14 per cent. The company also proposed no dividend pay out for 2013.
The capital’s ADX Securities Index climbed 0.84 per cent to 4852.68, with shares of majority of stocks witnessing gains. Real estate sector saw the biggest rise, its index up 4.99 per cent.
Aldar Properties and Rak Properties rose 5.33 per cent to Dh3.56 and 1.83 per cent to Dh1.11 respectively.
— With inputs from Reuters
