UAE shares recover on global-market rebound

DUBAI - UAE shares recovered yesterday as a global-market rebound boosted investor confidence and as banks began refunding participants in the initial public offering of Drake & Scull, the Dubai-based contracting company that raised Dh124 billion in a share sale this month.

By A Staff Reporter (UAE Stock Markets)

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Published: Thu 31 Jul 2008, 11:36 PM

Last updated: Sun 5 Apr 2015, 1:02 PM

The Dubai Financial Market (DFM) General Index rose 1.1 per cent to close at 5,405.44 while the Abu Dhabi Securities Exchange (ADX) General Index added 0.9 per cent at 4,976.15 points, with Dana Gas gaining after it was assigned land to build an industrial complex.

Gulf General Investment Co, a shareholding firm with at least 30 subsidiaries and affiliates, surged 9.1 per cent to Dh9, its biggest one-day gain since December 2006 while the second-largest mortgage lender in the UAE, Amlak Finance, grew 3.4 per cent to Dh4.53. Air Arabia, a low-cost carrier based in the UAE emirate of Sharjah, was also a big gainer with a rise of 2.5 per cent to Dh1.61 and Dubai's third-largest real-estate company Deyaar Development advanced two per cent to Dh2.08.

"The rebound in international markets is helping regional investors' confidence," said Motaz Irshaid, an institutional sales trader at Al Futtaim HC Securities, in a Bloomberg report. He also noted an increase in liquidity as banks started returning about Dh123 billion in excess cash to investors who took part in the Drake & Scull IPO that was 101 times oversubscribed.

Oil stocks declined to a 12-week low, boosting the European and Asian stocks and the profit outlook for airlines. The US index futures also gained.

The Sharjah-based oil and gas producer and distributor, Dana Gas, jumped 3.9 per cent to Dh1.88 while National Marine Dredging Co, a UAE company that deepens waterways, topped ADX with a surge of 9.9 per cent to Dh11.65.

Aabar Investments, the former UAE-based oil and natural-gas explorer that sold its only energy asset in March, climbed 0.2 per cent to Dh4.47 as second-quarter profit soared on sale. The company said net income reached Dh546.3 million, or 60.7 fils a share, from Dh22.9 million, or 2.5 fils, a year ago.

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