(MENAFN-Khaleej Times) dubai?s benchmark index climbs 2%, the most since feb 16, emaar jumps 6
Dubai’s stock index brushes off the negative impact of rising political tension in crimea. — kt file photo
A sharp jump by emaar properties in the wake of its announcement of a higher 2013 dividend and a plan to list its shopping mall unit drove dubai’s stock index up regardless of the negative impact of rising political tension in crimea.
Shares of emaar, the company with the biggest weighting in dubai’s benchmark index, surged the most since september as the developer of the world’s tallest skyscraper unveiled plan for a dh9 billion share sale of its shopping malls to reward stockholders.
Emaar shares surged as much as 6.8 per cent to dh9.25 before closing 5.1 per cent higher at dh9.10 as the developer said the proceeds generated from the public offering would primarily be distributed to shareholders as dividend. emaar’s board proposed a 15 per cent cash dividend and a 10 per cent bonus share issue for 2013 — the company’s highest dividend since 2007, when it paid 20 per cent. the cash dividend for 2012 was 10 per cent.
The dfm general index climbed two per cent, the most since february 16, to 4,058.77 points at the close in dubai. other gainers on the dfm included emirates nbd, another blue chip stock that jumped 5.8 per and emirates integrated telecommunications co, up 0.9 per cent.
Dubai’s market turnover was only moderate on sunday, and many of its most heavily traded shares fell.
After the trading hours on sunday, abu dhabi and the uae central bank said they had agreed to refinance $20 billion of debt due this year that was extended to the dubai government as emergency aid in the wake of global financial crisis. the news was positive for dubai but widely expected by the markets.
Two other uae property-related names also gained on sunday. construction firm arabtec rose 0.4 per cent, while abu dhabi’s aldar properties added one per cent.
Abu dhabi’s index fell 0.5 per cent because of soft banking and cement stocks, moving in line with other gulf markets, which enjoyed no major positive news to offset the gloomy global mood created by the ukraine crisis.
In muscat, omantel fell 2.2 per cent to or1.555 after the company said the first half of the oman government’s sale of a 19 per cent stake in the firm, a private placement, had been completed and was 1.99 times subscribed.
Egypt’s gauge gained after the nation repatriated half of the “outstanding” cash owed to foreign investors who sold their stock holdings amid the political turmoil. egypt’s egx 30 index advanced 0.3 per cent to 8,161.8 in cairo.
Saudi arabia’s index dropped 0.1 per cent and kuwait’s gauge retreated 0.3 percent. qatar’s qe index declined 0.2 per cent and bahrain’s was little changed.
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