Dubai:
Arabtec hit an upper circuit on Wednesday as traders covered short positions and with some fresh buying, boosting sentiment in the wider market, triggering outperformance of Dubai index regionally.
“The clarification that the rights issue would be first and its open for all shareholders and assurance from Aabar on its subscription gives comfort and stability for investors of Arabtec,” said Marwan Shurrab, head of high net worth and retail equity brokerage Al Ramz.
Arabtec shares hit their upper circuit, ending 15 per cent higher to end at Dh0.966. Arabtec plans to Dh1.5 billion in rights issue, and then reduction in share capital.
Property majors like Emaar Properties, Union Properties, and Aldar Properties witnessed buying. The Dubai Financial Market General Index closed 2.42 per cent higher at 3,646.08.
“That positive sentiment trickled down to small stocks that were facing pressure for the past couple of days, showing a significant upside in the overall index,” said Shuraab.
Union Properties closed more than 10 per cent higher at Dh1.020, while Dubai Islamic Bank closed 0.48 per cent higher at Dh6.25.
Emaar Properties closed more than 2.5 per cent to be at Dh7.60.
Going ahead, driven by positive momentum, Dubai index may gain further.
“Dubai index is looking very positive, and the index may break resistance level,” Shuraab said.
The Abu Dhabi Securities Exchange General Index closed 0.65 per cent higher at 4,637.52. Aldar Properties closed 2.93 per cent higher at Dh2.46. National Bank of Abu Dhabi Securities closed 0.96 per cent higher at Dh10.50. First Gulf Bank closed 0.37 per cent higher at Dh13.70.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 7,062.85, up 0.07 per cent. The Qatar exchange index closed 0.17 per cent higher at 10,952.66.
The Muscat MSM 30 index closed 0.26 per cent higher at 5,867.46.
The Kuwait exchange index closed 26 points higher at 6,792.73.
The Bahrain exchange index closed more than 1 per cent higher at 1,342.75.
