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
ALMARAI 81.24 381,301
SAGRINSURANCE 30.61 1,681,287
SABIC 89.74 5,957,234
STC 66.95 405,630
EEC 30.43 1,971,179
EMAAR 5.89 3,150,173
RIBL 12.54 334,309
Recent News

Removal of subsidies may impact property market
The removal of fuel and utility subsidies in Bahrain is likely to have a long-term impact on industrial and residential property markets, according to real estate consultancy Cluttons.


Alba appoints new manager
Alba has announced the appointment of Mohammed Khalid as the new manager for customer services and marketing operations.

In his new role, Mr Khalid will oversee customer service operations

KMC to sponsor major Gulf construction expo
The Northern Gulf’s leading annual expo for the GCC’s construction sector, gulfBID 2016, has secured strategic sponsorship from Kuwaiti Manager Contracting (KMC), it was announced yesterday.

Saudi Arabia’s building and construction exports grow by six per cent
The domestic export of construction and building materials and products grew at a constant rate of six per cent per year, reveals a senior official.

Feras Abalkhail, marketing and corporate

UAE Exchange celebrates its 35th anniversary
In a first-of-its-kind initiative, UAE Exchange, the leading global remittance, foreign exchange and payment solutions brand, celebrated its 35th anniversary by felicitating 35 of its oldest valued c

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


Looking ahead, what change you are more likely to make in investing in your domestic stock market?