Stocks gain Dhs4 billion as Emaar spikes

13/06/2017 01:31 AST

Emaar is back in uptrends, spiking to a one-year high of AED7.83, continuing its rising streak since its announced plans earlier in the week to sell as much as 30 percent of its real estate development business in the country in an initial public offering in November.

Driven by the prevailing high sentiments, the trading companies gained Dhs4 billion in market value, with Emaar’s outperformance reflecting positively on the real estate sector in its entirety, driving Damac to close at Dhs2.97 and Union Properties to AED0.926. At Abu Dhabi Securities Exchange, ADX, Aldar edged high to Dhs2.35 and Eshraq Properties to Dhs1.07.

Emaar’s rebound has been expected, according to market analysts, as a state of calmness prevailed after its record last week, with cash inflows normally heading toward the property sector, drawing on the decent gains booked by real estate firms over the past few days, driven by Emaar.

Within this context, DFM General Index closed high 1.16 percent at 3,427 points, with ADX following suit by 0.28 per cent at 4511 points.

Reflecting the positive mood prevailing in the market, a total of 5717 transactions were conducted worth Dhs800 million over 738 shares.

Dubai’s Drake & Scull climbed 2.4 percent; it has now risen 8.0 percent in unusually large volumes since Thursday. Former chief executive Khaldoun Tabari has sold his stake in the company to Tabarak Investment, a source told Zawya, a Thomson Reuters publication.

Tabarak Investment’s stake stands at around 18 to 20 percent after the sale, making it the largest shareholder, Zawya said. In April, DSI said it would sell 500 million dirhams ($136 million) of shares to Tabarak as part of its capital restructuring programme, subject to regulatory approval.

A 3.0 percent gain in shares of the largest listed real estate developer, Emaar Properties, to 7.83 dirhams also helped to carry Dubai’s index 1.2 percent higher.

In Abu Dhabi, its largest listed developer Aldar Properties was also strong, gaining 4.4 percent to its highest closing price since late March.

The Gulf Today