Wednesday 16 December 2009

Dubai Shares Advance as Investors Speculate Drop Is Overdone

Dubai shares advanced for a third time this week, led by Emaar Properties PJSC and Arabtec Holding Co., on investor speculation that declines so far this quarter are overdone given growth prospects.

Emaar, the biggest property developer in the United Arab Emirates, climbed to the highest in three weeks, recovering most of the losses since Dubai World first announced it would seek a standstill agreement on its debt repayments. Arabtec, the U.A.E.’s largest construction company, rose to the highest in more than a week. The DFM General Index, down 15 percent this quarter, gained 1.4 percent to 1,868.36 at 12:44 p.m. in the emirate. Abu Dhabi’s ADX General Index declined 1.1 percent.

“Given the pressure the market has been under recently, investors realize there is value out there,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd. The index has been lagging behind other emerging markets and is struggling to make up some of the losses before yearend, Khan said.

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