Speculation rife of strategic investor in SHUAA as DFM volumes jump

Dubai: Shuaa Capital continued to be one of the most active stock in trade on Thursday amid speculation that a strategic investor may be buying the stock from open market.

Shares of Shuaa Capital ended half a per cent higher at Dh0.35, after hitting an upper circuit in the previous session. The total traded volumes continued to surge, and on Thursday shares worth Dh50 million were traded, making it the second most active stock in trade after Emaar Properties.

Shuaa Capital has shed 70 per cent of its value since 2014. It swung into a loss of Dh190.3 million in 2015 after reporting profit of Dh25.8 million in 2014.

“It’s a continuation of a trend in the market sending rumours in certain companies about strategic investors in certain companies. We may see somebody coming in to buy 5-7 per cent of Shuaa from the market. This is more of speculation driven,” said Mohammad Ali Yasin, managing director at National Bank of Abu Dhabi Securities.

Tariq Qaqish, head of asset management at Al Mal Capital also agreed.

“We don’t have any information if it’s a strategic investor or pure speculation in Shuaa Capital. Trading around 50 per cent of the capital in the past 4 days is massive,” Qaqish said. Officials at Shuaa Capital, which is 49 per cent owned by Dubai Banking Group, according to DFM. Shuaa remained unavailable for a comment.

DFM index

The Dubai Financial Market General index, where Shuaa Capital is listed, closed 0.93 per cent higher at 3,355.53, while Abu Dhabi Securities Exchange General index closed 0.57 per cent lower at 4,369.50.

Emaar Properties closed more than 2 per cent higher at Dh6.02, while Drake and Scull ended more than 4 per cent higher at Dh0.490. DAMAC Properties closed more than 1 per cent at Dh2.73. Abu Dhabi National Eneregy ended more than 6 per cent higher at Dh0.49. Aldar Properties closed more than a per cent at Dh0.49.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.09 per cent higher at 7,220.97, while Qatar Exchange index closed 0.61 per cent higher at 10,376.20.Muscat Securities MSM 30 index ended steady at 5,467.42.