Bourses’ buoyant mood is punctured

Just when local markets were rebounding after a dismal few weeks, Aabar Investments comes along and knocks them right back to the turf.

The company’s announcement that it is considering going private – and therefore de-listing from the Abu Dhabi Securities Exchange (ADX) – was posted to the bourse website after the close of trade yesterday. The news deflated the buoyant mood that pervaded the Abu Dhabi and Dubai exchanges the first two days of the week, when both markets moved higher in a sharp reversal of the recent trend.

There were conflicting theories about what sparked the surprising buying frenzy: some traders said it was related to climbing oil prices and China’s move to strengthen the yuan; others whispered about rumours that the long-delayed Dubai World debt restructuring was close to a final resolution.