Wednesday 18 January 2012

Abu Dhabi Shares Jump Most Since 2009 on Bets Drop Overdone - Businessweek

Abu Dhabi shares jumped the most in more than two years amid speculation losses this month, prompted by investor concern that Dana Gas PJSC may struggle to repay debt, were overdone and as oil prices rose.

Dana Gas surged the most since 2009 after the company, which has a $1 billion Islamic bond maturing in October, said it will honor debt payments. Sorouh Real Estate Co. rallied 7.3 percent. The ADX General Index jumped 1.7 percent, the most December 2009, to 2,332.72 at the 2 p.m. close in Abu Dhabi. Before today, the measure had lost 4.6 percent in January. Dubai’s DFM General Index rose 1.6 percent as Union Properties PJSC surged.

This year’s decline left the 67 companies in Abu Dhabi’s benchmark gauge valued at an average 7.3 times estimated earnings, compared with 9.9 times for the MSCI Emerging Markets Index. Abu Dhabi’s measure is valued at about 1 times net assets, or book value, while emerging markets stocks are valued at 1.6 times. The MSCI gauge rose to the highest since November.

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