Dec. 7 (Bloomberg) -- Dubai shares rose for the first time in three days on bets European leaders will step up efforts to fight the region’s debt crisis and after a Dubai Holding LLC unit said it will meet a debt repayment in February.
Emaar Properties PJSC, the developer of the world’s tallest skyscraper, climbed 1.5 percent after tumbling 3.6 percent yesterday, while Drake & Scull International PJSC advanced for the second time this week. The DFM General Index gained 0.2 percent to 1,386.27 at the 2 p.m. close in Dubai, paring the drop for the year to 15 percent. The Bloomberg GCC 200 Index gained 0.3 percent and the MSCI Emerging Markets Index jumped as much as 1.1 percent.
German Finance Minister Wolfgang Schaeuble said Standard & Poor’s move to place 15 euro nations, including Germany and France, on review for possible downgrades will help force leaders to ratchet up efforts to resolve the debt crisis at their summit in Brussels from Dec. 8 to 9. The ratings company said cuts would depend on the meeting’s outcome.
“Equity markets will remain highly correlated to international news and it seems that investors are expecting a big announcement from European countries in the coming days,” said Tariq Qaqish, deputy head of asset management at Dubai- based Al Mal Capital. “The news of Dubai Holding paying its bonds on time has prompted positive sentiment for investors questioning the ability of Dubai entities to meet their obligations.”
Dubai Holding Commercial Operations Group LLC, a real- estate and hospitality company owned by Dubai’s ruler, said yesterday it will repay a $500 million bond from its cash flow when the notes mature in February. The announcement came after Moody’s Investors Service said Dubai and its state-owned non- financial companies have outstanding debt of $101.5 billion and may need support to meet these obligations.
Crude oil for January delivery rose as much as 0.7 percent to $101.94 a barrel. Gulf Arab oil exporters, including the United Arab Emirates, supply about a fifth of the world’s oil.
Emaar advanced to 2.76 dirhams and Drake & Scull, a Dubai- based construction company, rose 1.9 percent to 82.5 fils.
Saudi Arabia’s Tadawul All Share Index advanced 0.6 percent and Qatar’s QE Index gained 0.3 percent. Bahrain’s BB All Share Index and Oman’s measure rose 0.1 percent. Kuwait’s measure dropped 0.1 percent and Abu Dhabi’s ADX General Index declined 0.3 percent.
--Editors: Claudia Maedler, Inal Ersan
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