x Abu Dhabi, UAETuesday 25 July 2017

DP World sale of Australian unit boosts shares to two-year high

DP World was the focus of trading yesterday as its shares hit a two-year high after the company sold a US$1.5 billion stake in its Australian unit to repay debt.

Emaar's India venture reportedly lost a court case. Sanjit Das / Bloomberg
Emaar's India venture reportedly lost a court case. Sanjit Das / Bloomberg

DP World was the focus of trading yesterday as its shares hit a two-year high after the company sold a US$1.5 billion stake in its Australian unit to repay debt.

Shares in the Dubai-controlled ports operator climbed 6.3 per cent to 64 US cents on NASDAQ Dubai, giving the company a market value of $10.6bn.

DP World said it planned to use the proceeds to repay borrowings.

The Dubai Financial Market (DFM) General Index closed 0.1 per cent down at 1,623.83 and the Abu Dhabi Securities Exchange (ADX) General Index crept 0.05 per cent higher to 2,699.73. Despite the enthusiastic reaction to DP World's sale, it did not benefit other bourses.

"I don't think that the sale of the unit has affected the [DFM and ADX]," said Ameed Kanaan, the general manager at Al Jazeera Financial Services. "Our market is already tired and very weak, and not much news can change this."

Mr Kanaan said heavyweight stocks such as Emaar Properties could be susceptible to more profit-taking by the end of the year.

Emaar dropped 1.4 per cent to Dh3.44 on news that its Indian joint venture lost a court case related to its Commonwealth Games development. The building contractor Arabtec also slipped, by 1.02 per cent to Dh1.95. Deyaar Development bucked the trend, gaining 1.01 per cent to close at 30 fils.

In the capital, banking stocks slipped. National Bank of Abu Dhabi declined 0.8 per cent to Dh11.65, and RAK Bank fell almost 6 per cent to Dh4.6.

Elsewhere in the region: Qatar fell 0.1 per cent to 8,654.57; Kuwait rose 0.7 per cent to 6,865.80; Bahrain declined 1.1 per cent to 1,408.07; Oman rose 0.1 per cent to 6,718.81; and the Saudi Tadawul All-Share Index inched up 0.06 per cent to 6,609.53.

 

fhalime@thenational.ae