Dubai: The Dubai index rose to its highest in three weeks, helped by the S&P upgrade, and the gains were led by Emaar Properties. Abu Dhabi, meanwhile, ended lower.
The Dubai Financial Market General Index ended 0.65 percent higher at 5,127.92, after hitting a high of 5,162.25, a level last seen on September 3. Dubai Islamic Bank rose more than 3 per cent.
“It’s generally positive environment. We have plenty of interest in IPOs and fundamentally strong economic environment in the GCC region that is driving the market,” said Saleem Kokhar,
“The near-term outlook is positive, but we will see some volatility and I won’t be surprised if investors take some money off the table,” said Kokhar.
S&P upgraded the UAE index into an emerging market index on September 22, potentially attracting investments of $700 million in the region.
Emaar Properties, whose unit’s IPO is being subscribed currently, ended 1.29 per cent higher at Dh11.80. Emaar was the most active stock in terms of value.
The developer of the world’s tallest tower started selling at least 15 per cent of shares in Emaar Malls Group from September 14, and plans to list them on Dubai Financial Market on October 2. The share sale is touted to be one of the biggest after the credit crises of 2008, when many companies were forced to restructure debts and stall projects.
Emaar Malls offering
At least 70 per cent of the Emaar Malls offering will be allocated to qualified institutional investors and 30 per cent to individuals. A minimum 10 per cent will be earmarked for Emaar shareholders as of September 10, while the Emirates Investment Authority reserved 5 per cent of the offering allocated to institutions.
On the index, out of a total of 27 shares traded on the exchange, shares of 15 companies declined, shares of eight rose, while shares of the rest four companies remained unchanged.
In Abu Dhabi, the general index ended 0.60 per cent lower at 5,119.07. Out of a total of 33 companies, shares of 13 companies rose, while 5 of them declined and the other 15 remained steady.
Abu Dhabi National Takaful Co fell more than 9 per cent in trade, while Invest Bank fell more than 5 per cent.
