Wednesday 14 March 2012

Dubai Shares Climb a 2nd Day as Debt Woes Fades, on Fed Outlook - Bloomberg

Dubai stocks headed for the highest close in more than a week after Dubai Electricity & Water Authority said it will pay loans ahead of schedule and the Federal Reserve raised its assessment of the U.S. economy.
Emaar Properties PJSC (EMAAR), developer of the world’s tallest skyscraper, was poised for the highest close in almost two weeks. Dubai Islamic Bank PJSC (DIB) rose 1.8 percent. The DFM General Index (DFMGI) gained 1.3 percent to 1,703.94, headed for the highest close since March 5, at 11:55 a.m. in the emirate. The cost of protecting Dubai’s debt against default dropped 17 basis points to 355 yesterday, according to data compiled by Bloomberg.
Dubai Electricity Chief Executive Officer Saeed Mohammed al-Tayer said yesterday the state-run utility will repay 1.2 billion dirhams ($327 million) in loans ahead of schedule. Default risk for Dubai has declined this year partly on pledges that the emirate’s main companies will manage to refinance debt without state assistance.

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