MARKETS LATEST:Investors take heart from Dubai developer identifying 'better option' than Amlak Finance debt conversion.
Emaar shares bounce back after Amlak news
Emaar Properties rose in afternoon trading after the Dubai developer announced that it had identified better and viable options than converting debt into equity in Amlak Finance.
Shares of Emaar added 0.8 per cent to Dh3.55, shares were flat during the first half of the trading session.
“The news was seen as positive which is why we saw a reversal in the performance in the stock during the second half of the session,” said Yazan Abdeen, fund manager at ING Investment Management in Dubai.
On the Abu Dhabi Securities Exchange General Index, shares of Aldar remained flat at Dh2.26, but remained the most active stock on the exchange. Shares closed down almost 10 per cent for the week as Government funding failed to materialise.
Investors are losing patience with Aldar as they wait to learn how much support the Abu Dhabi Government will provide and when it will be delivered, said Ameed Kanaan, the general manager of Al Jazira Financial Services in Dubai.
Property stocks, which make up the bulk of trading on the bourse, continued to fall as they did throughout most of the week. Sorouh Real Estate declined 1.8 per cent to Dh1.63. RAK Properties fell 2.1 per cent to 45 fils.
Elsewhere in the region Kuwait’s measure added 0.3 per cent to 6,853.20. Bahrain’s index gained 0.2 per cent to 1,427.14. Oman’s bourse declined 0.1 per cent to 6,635.11. Qatar’s index lost 0.4 per cent to 8,733.16. The Saudi Tadawul was closed for the day.
Emaar shares recovered after an early dip this morning as investors reacted to a report that the developer may increase its stake in the Islamic mortgage firm Amlak.
Emaar shares remained unchanged at Dh3.52 in morning trading. Amlak's shares have been suspended for two years after the credit crunch dried up liquidity and the values of property in Dubai fell. Emaar currently has a 48 per cent stake in the mortgage firm.
Trading was thin across the UAE. Traded value on the Abu Dhabi Securities Exchange reached Dh14.6m, while the Dubai Financial Market was at Dh38.1m.
In Dubai, Arabtec Holding, Dubai's biggest contractor, added 0.5 per cent to Dh1.93 a share, while Dubai Financial Company rose 0.6 per cent to Dh1.50.
The Dubai Financial Market General Index remained flat at 1628.50, while the Abu Dhabi Securities Exchange General Index lost 0.3 per cent to 2707.83.
Sorouh Real Estate declined 1.2 per cent to Dh1.64. Aldar Properties remained unchanged at Dh2.26.
The euro last traded at $1.3222, compared with $1.3231 late in New York on Wednesday after Moody's warned about downgrading Spain's credit rating citing high debt funding needs.
Elsewhere in the region, Kuwait's measure rose 0.1 per cent to 6836.70. Bahrain's measure added 0.2 per cent to 1427.14. Oman's index remained flat at 6641.58. Qatar's index lost half a per cent to 8772.67. The Saudi Tadawul was closed for the day.