x Abu Dhabi, UAESunday 23 July 2017

Du dominates bourse after paying its Dh3bn bill

Market Wrap; The UAE's second biggest phone operator, du, rose to its highest in a week after it said it repaid a loan to its lenders

How the DFM closed on July 3, 2011.
How the DFM closed on July 3, 2011.

The country's second biggest telecoms operator, du, rose to its highest point in a week after the company said it repaid a Dh3 billion to its lenders.

Shares in the company rose 2.9 per cent to Dh3.20, after it announced it has repaid the loan to 16 banks using a combination of existing financing facilities and cash, it said on a statement on the Dubai bourse.

The company, which entered the UAE market in 2006, has gained 13.5 per cent since the lows in March at the height of the so-called Arab Spring.

The wider Dubai Financial Market General Index, also staged its biggest daily gain in more than two months as investors were buoyed by Greece's latest aid package.

The Dubai Financial Market General Index climbed 2.4 per cent to end at 1,553.31 points, its highest point in a week, in the first day of trading after the Greek Parliament approved a set of austerity measures that staves off fears of a eurozone debt crisis.

International equities climbed higher on Friday as some clarity emerged on Greece's debt crisis. The country is suffering from one of its deepest recession in 40 years and a default would probably lead banks to freeze lending to other indebted European countries, causing a eurozone debt crisis.

Among the biggest gainers at the opening bell, Emirates NBD, the country's largest bank by assets, climbed 6 per cent to Dh4.40 and Emaar Properties, the developer of the world's tallest tower, advanced 3.3 per cent to Dh3.12, as almost 7 million shares changed hands.

Analysts said the local markets were now at the mercy of international news as the summer hiatus gets underway.

"[Local market] performance is exclusively geared to external market moves," said Julian Bruce, the head of institutional sales at EFG Hermes in Dubai.

Shares of Tamweel, the home finance company majority owned by Dubai Islamic Bank, will be included in the Dubai Financial Market General Index and the banking subindex from today, according to a statement on the Dubai bourse.

Tamweel shares restarted trading on May 10 after being halted for almost two years pending its reorganisation.

In the capital, the Abu Dhabi Securities Exchange rose as much as 0.8 per cent to its highest level in a week, before closing 0.2 per cent higher at 2,708.40 points.