Tuesday 17 May 2011

Dubai Shares Advance Most in a Week After Dubai Bank Rescue; Emaar Climbs - Bloomberg

Dubai shares rose the most in almost a week after the emirate’s government rescued Dubai Bank PJSC, a lender part-owned by Emaar Properties PJSC (EMAAR), the company with the heaviest weighting in the benchmark index.

Emaar, which held a 30 percent stake in the Islamic lender, rallied 1.6 percent. Dubai Financial Market (DFM) PJSC, the only Gulf Arab stock market to sell shares to the public, gained the most in a week. The DFM General Index (DFMGI) advanced 0.6 percent, the most since May 11, to 1,572.56 at 11:29 p.m. in Dubai. The Bloomberg GCC 200 Index (BGCC200) was little changed.

Dubai’s government will inject capital “to ensure that Dubai Bank’s business continues uninterrupted,” its media office said yesterday. Dubai Holding LLC, a company owned by the emirate’s ruler, held a 70 percent stake in Dubai Bank. The takeover, aimed at protecting depositors’ interests, will “effectively dilute the complete” stake of Dubai Holding and Emaar, the statement said.

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