Arabtec Holding leads another rally in Dubai after the investment bank Al Mal Capital upgraded the UAE's biggest construction company to "outperform".
Arabtec leads a strong day
Arabtec Holding led another rally in Dubai yesterday after the investment bank Al Mal Capital upgraded the UAE's biggest construction company to "outperform" from "market perform" following last week's Dubai World announcement. Arabtec climbed 11.6 per cent to Dh2.59. It was one of many stocks to get a boost from the Dubai Government's proposal last Thursday to pump US$9.5 billion into Dubai World and its property arm Nakheel, part of which is set aside for major creditors such as Arabtec. "For Arabtec, it appears that at least 30 per cent of its outstanding Dubai receivables is likely to find a favourable solution from Dubai World and Nakheel," Al Mal Capital said. "We estimate Nakheel owes Arabtec Dh1bn, of which the contractor is likely to get Dh400 million cash and Dh600m worth of tradable securities." The Dubai Financial Market (DFM) General Index ended trading 1.9 per cent higher at 1,880.62. Emaar Properties shares gained 1.2 per cent to Dh4.12 a share. Shares in the DFM moved 1.5 per cent higher to Dh1.97 a share. The Abu Dhabi Securities Exchange General Index closed 0.8 per cent higher at 2,929.32. Property stocks led the gains, with Sorouh Real Estate up 5.3 per cent to Dh2.55 a share and RAK Properties advancing 1.8 per cent to Dh0.56. Elsewhere in the region, Qatar's bourse gained 0.5 per cent while Bahrain's main measure was down 1.2 per cent. The Muscat Securities Market index closed 0.5 per cent higher; the Kuwait Stock Exchange index slipped 0.2 per cent; and the Saudi Tadawul All Share Index rose 0.08 per cent. email@example.com