Shares Surge as Buyers Go on Buying Spree


24/03/2009 00:00 AST

UAE shares advanced Monday on rising investor confidence, with buyers hopeful that a stream of financial stimulus measures will begin to revive faltering economies.

Investment company Aabar Investment paced gainers in Abu Dhabi, rising 3.98 per cent to Dh1.79 after Aabar said that Abu Dhabi’s government-owned International Petroleum Investment Co. had completed an acquisition of Aabar convertible bonds worth Dh5.2 billion. This acquisition came one day after Abu Dhabi-based Aabar acquired a 9.1 per cent stake in Daimler AG, making it the biggest shareholder in the struggling German car-maker.

The Dubai Financial Market benchmark rose 1.07 per cent to 1,558.00, led by property issues, which edged up 3.46 per cent. The main index of the Abu Dhabi Securities Exchange inched up 0.41 per cent to 2,424.80.

“There is increased concurrence among investors and analysts that current stimulus and quantitative easing measures in Western economies will start to deliver results and spark the first glimmers of recovery this year,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes.

Investors now have a two-pronged rationale for buying, said Wakeman.

“The first is the ongoing speculation about stimulus and cash injections on a global and domestic level, and the second is first quarter results.”

The Dubai bourse will be testing a new resistance level of between 1560 and 1580, said Hesham Bakry, institutional sales manager at Al Futtaim HC Securities.

“An upward channel in the coming days will confirm that investor confidence is improving and investors are more keen on taking risks,” he said.

Index heavyweight Emaar Properties jumped 4.78 per cent to Dh2.19. Shares in Sharjah-based budget airline Air Arabia edged up 5.15 per cent to Dh1.02.

“Both stocks lagged in recent market rallies and are playing catch-up, “ Bakry said. Arabtec Holding, the country’s biggest construction company, edged up 1.21 per cent to Dh1.66. The company said earlier it was ahead of schedule on its Dh638 million property project in Dubai Marina. The Commercial Bank of Dubai added 2.35 per cent to Dh4.35.

Abu Dhabi stocks also showed strength, with Arkan Building Materials Co. rising 9.85 per cent to Dh5.02.

International Petroleum Investment’s conversion of Aabar convertible bonds into ordinary shares, at Dh3 per share, raises its stake in Aabar to 71 per cent. Abu Dhabi National Energy Co. jumped 6.51 per cent to Dh1.80 on follow-through interest after the company said on Sunday it had paid $320 million for half of Marubeni Corp.’s Carribbean power portfolio. ?

Khaleej Times
Market News
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | News Archive
Most Viewed Companies
Ticker Price Volume
SAGRINSURANCE 29.91 104,296
STC 67.77 570,542
SABIC 93.8 3,597,712
JULPHAR 2.6
EEC 31.18 15,012,922
CHEMANOL 11.21 1,391,250
GFH 0.2
Recent News

International Monetary Fund increases MENA presence
In the case of Iraq, the economy has actually been hit by two separate shocks which are undermining balance of payments stability. First, the decline in global energy prices has cut heavily into expo

Middle East investors to spend $15 billion/year in global real estate
The Middle Eastern investor base has expanded, fuelled by weakening oil prices; this has led to a major shift in global investment strategies towards greater geographic and sector diversification, wi

Prizes awarded to Bank Sohar Facebook Competition winners
MUSCAT: In a recent prize giving ceremony, Bank Sohar presented gift certificates to each of the ten winners of its Ramadhan Facebook Competition totalling RO 1,000. The competition, which was launch

New Hassad Savings Scheme from OAB
MUSCAT: Oman Arab Bank (OAB) has unveiled its new “Hassad” Savings Scheme for the second half of 2015, allowing customers to win exciting prizes from July through December. The scheme has over half a

Sohar port’s container handling capacity to reach 1.5 million 20-foot
MUSCAT: Sohar port is in the process of developing its container handling capacity of terminal C to reach its final capacity of 1.5 million twenty-foot equivalent units (TEUs) per annum, said a senio

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Which of the following do you think is the best long-term investment?