Dubai Stocks Maintain Profits After Break
DUBAI : The Dubai stock market opened up on Sunday after a two-day weekend which followed a Thursday surge of 7.0 percent, lifted by property giant Emaar’s decision to abandon a merger with state-owned entities.
Dubai Financial Market index opened 0.9 percent up, and increased gains within 30 minutes to 2.3 percent, or 37.67 points to 1,678.43 points.
The value of trades also increased within 30 minutes from 16.3 million dirhams (4.4 million dollars) to 178 million dirhams (48.5 million dollars).
Emaar Properties, the largest Middle East real estate firm by market capitalisation, saw its shares rocket on Thursday by 14.84 percent, narrowly missing the maximum-allowed daily increase of 15 percent.
On Sunday, Emaar shares were trading more than 6.0 percent up.
The recovery followed days of severe battering for leading shares, dropping almost the maximum-permitted 10 percent, as the market remained shaky over Dubai’s debt woes.
The market trades on Monday on the eve of the maturity of 3.5 billion dollars of Islamic bonds issued by Nakheel, the huge property arm of government-owned Dubai World — whose liabilities amount to 59 billion dollars.
Dubai rocked world markets in late November when it requested a freeze on debt payments by Dubai World, in order to restructure the group. Gulf markets also took the news badly.
In neighbouring Abu Dhabi the market was up 2.85 percent in the first 30 minutes to 2,573.54 points.
Dubai Stocks Maintain Profits After Break was first posted on December 13, 2009 at 2:43 pm.
Dubai stocks plunge again after recovery
DUBAI : Dubai’s stock market which opened slightly up on Thursday after leading Emaar cancelled a merger with government entities, plunged again within less than half hour of trading by over four percent.
At 0630 GMT, the Dubai Financial Market index was trading down 4.03 percent, or 61.8 percent, at 1,471.54 points, after it had slightly recovered by 0.4 percent at open.
The market recovered losses later to 2.17 percent, or 33.26 points down, to 1,500.10 points.
Emaar shares had bounced back by some 7.0 percent in early trading before plummeting again by over 6.0 percent. The company’s shares fluctuated since the opening.
Arabtec construction giant also saw its leading shares dropping by almost the maximum-allowed limit down of 10 percent. Union Properties was also down by over 7.0 percent, while Emirates NBD bank dropped five percent.
Emaar said late Wednesday that it has decided to cancel merger plans with the property arm of government-owned Dubai Holding, as the largest Middle East property developer by market capitalisation appeared to distance itself from the heavily-indebted government entities.
In Abu Dhabi, the market was trading down by 1.33 percent at 2,434.24 points, with the construction and real estate sectors leading the drop by 3.06 percent and 2.94 percent respectively.
The markets continue to reel under the impact of Dubai’s debt woes, triggered late November by the government’s request to freeze debt repayments of its largest and most-indebted Dubai World group — liable for 59 billion dollars.
By Wednesday, Dubai’s DFM index had shed over 26 percent of its value since the debt standstill was announced, wiping out all gains made this year.
Dubai stocks plunge again after recovery was first posted on December 10, 2009 at 1:17 pm.
