DP World shares fall 7.56% on DIFX

Dubai: Shares of Dubai Ports World tumbled, closing 18 per cent below their initial public offering price at $1.10, as investors opted to buy shares denominated in local dollar-pegged currencies that might appreciate.

DP World fell 7.56 per cent on the Dubai International Financial Exchange. The port company sold shares for $1.30 in an IPO that closed last month.

Investors are favouring other regional markets because they are concerned about the dollar's weakness and possible revaluations of Gulf currencies, said Mohammad Al Alami, head of the international desk at Naeem Shares and Bonds.

The Dubai Financial Market General Index fell 0.1 per cent to 5,737.39, dropping for a fourth day. The Abu Dhabi Securities Market Index decreased 0.5 per cent to 4,520.80, ending a 10-day winning streak.

Meanwhile, Saudi Arabian shares advanced for a second day on speculations of improved fourth-quarter earnings. Saudi Basic Industries, known as Sabic, and Al Rajhi Bank led the gains. The Tadawul All Share Index rose 2.8 per cent to 11,349.99, its highest close since September 2006. The measure has jumped 45 per cent so far this quarter.

Bahrain's stock market was closed for a second day for its National Day holiday. The Kuwait Stock Exchange Index added 0.2 per cent, while Oman's Muscat Securities Market 30 Index rose 0.5 per cent. Qatar's Doha Securities Market Index dropped less than 0.1 per cent.