Bloomberg News

Dubai Stocks Gain, End 7-Day Drop, on Arabtec Contract, Europe

October 06, 2011

Oct. 6 (Bloomberg) -- Dubai shares rose for the first time in seven days after Arabtec Holding Co. won a contract in India and on investors’ optimism European policy makers will move to contain the continent’s debt crisis.

Arabtec, the United Arab Emirates’ biggest construction company, advanced the most in two months. Emaar Properties PJSC surged the most since August 29. The benchmark DFM General Index climbed 0.8 percent to 1,395.43 at the 2:00 p.m. close in the emirate, trimming this week’s decline to 2.5 percent. About 41 million shares traded today, compared with this year’s daily average of 111 million shares. The Bloomberg GCC 200 Index, which tracks the biggest 200 companies in the Persian Gulf region, rose 0.4 percent.

“Indexes in the U.A.E. are in positive territory due to a supportive global backdrop,” said Julian Bruce, equity sales head at EFG-Hermes Holding SAE in Dubai. “Arabtec news was well received but volumes are still light and buyers are still exercising caution ahead of the weekend.”

The Stoxx Europe 600 Index climbed 1.9 percent. European Union officials are working on plans to boost bank capital to contain the debt crisis, the International Monetary Fund said. Banks need the region’s regulators to help with financing to prevent the debt crisis from worsening, said UniCredit SpA Chief Executive Officer Federico Ghizzoni in an interview.

Arabtec rose 2.3 percent, the most since Aug. 10, to 1.33 dirhams. The Arabtec Construction LLC-Raheja venture won a contract valued at 750 million dirhams ($204 million). Emaar, the builder of the world’s tallest skyscraper in Dubai, advanced 1.6 percent to 2.57 dirhams.

Abu Dhabi’s ADX General Index gained 0.2 percent and Qatar’s measure climbed 1.1 percent. The Kuwait Stock Exchange Unweighted Index rose 0.1 percent, Bahrain’s benchmark gauge was little changed and Oman’s MSM 30 Index retreated 0.1 percent. Saudi Arabia’s market was closed.

--Editors: Claudia Maedler, Shanthy Nambiar

To contact the reporter on this story: Alaa Shahine in Dubai at asalha@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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