The markets take the latest update on Dubai World with a pinch of salt.
Investors take Dubai World update in their stride
The markets took the latest update on Dubai World with a pinch of salt yesterday. After months of incremental progress, a newspaper report that HSBC Holdings, LLoyds Banking Group and Standard Chartered had approved a draft proposal by Dubai World was not enough to motivate traders. "They are saying 'let's agree to agree'," said Rami Awwad at Alawael Securities, a brokerage based in Abu Dhabi. "There's no actual exchange or payment in the short term, so there's no impact on the market to be felt."
The Dubai Financial Market General Index rose 0.3 per cent to 1,508.24. Emaar Properties, Dubai's largest developer, rose 1.5 per cent to Dh3.30. Arabtec Holding, a Dubai contractor, jumped 1.7 per cent to Dh1.74. The bourse's shares remained unchanged at Dh1.49. The Abu Dhabi Securities Exchange General Index slipped 0.3 per cent to 2,517.76. Dana Gas, an oil and gas exploration company that has been heavily traded lately, dropped 1.4 per cent to 70 fils.
Aabar Investments remained unchanged at Dh1.43. The Emirates Securities and Commodities Authority said it would announce a decision today on whether the offer from the International Petroleum Investment Company (IPIC) to buy out minority shareholders was fair. IPIC offered Dh1.45 a share for the outstanding shares this week. Elsewhere in the region, Kuwait's measure moved up 0.1 per cent to 6,503.60. Qatar's index dipped 0.8 per cent to 6,959.34. Bahrain's bourse remained largely unchanged at 1,388.84, and Oman's measure dropped 0.2 per cent to 6,204.72. The Saudi Tadawul All-Share Index closed down 0.03 per cent to 6,216.70.