x Abu Dhabi, UAETuesday 25 July 2017

Traders eyes firmly fixed on DP World news

Investors focused on DP World as shares in the company jumped to two-year highs after it announced an asset sale

Eyes were firmly fixed on DP World as shares in the company breached two-year highs after it sold a $1.5 billion stake in its Australian unit to repay debt.

Shares in the Dubai-controlled container terminal operator climbed 6.3 per cent to 64 cents on Dubai's second bourse, NASDAQ Dubai. It gives the company a market value of $10.6 billion.

DP World plans to use the proceeds to repay borrowings.

The Dubai Financial Market (DFM) General Index closed 0.1 per cent down to 1,623.83 points and the Abu Dhabi Securities Exchange (ADX) crept 0.05 per cent higher to 2,699.73 points.

"I don't think that the sale of the unit has affected the [DFM and ADX]," said Ameed Kanaan, general manager at Al Jazeera Financial Services.

"Our market is already tired and very weak and not much news can change this," he said.

Mr Kanaan said local markets were even more susceptible to profit-taking on heavyweight stocks such as Emaar Properties.

The builder of the world's tallest skyscraper dropped 1.4 per cent to Dh3.44, the third consecutive daily loss in the company's share price.

Building contractor Arabtec also slipped 1.02 per cent to Dh1.95, though Deyaar Development bucked the trend as it gained 1.01 per cent to 39 fils.

In the capital, banking stocks lagged as National Bank of Abu Dhabi lost 0.8 per cent to Dh11.65 and RAK Bank fell nearly 6 per cent to Dh4.6.

Elsewhere in the market; Qatar fell 0.1 per cent to 8,654.57 points, Kuwait rose 0.7per cent to 6,865.80, Bahrain lost 1.1 per cent to 1,408.07, Oman gained 0.1 per cent to 6,718.81 and the Saudi Tadawul All-Share Index moved down 0.3 per cent to 6,588.40.