Dubai shares soared the most since February and the cost of protecting the emirate’s debt fell for the first time in six days after Emaar Properties PJSC abandoned a plan to combine with real-estate units of Dubai Holding LLC.
Emaar, the developer of the world’s tallest tower in Dubai, rose 15 percent, the most permitted by exchange rules. Arabtec Holding PJSC surged the most in a month. Dubai Islamic Bank PJSC climbed the most in more than a year. The DFM General Index advanced 7 percent, the biggest jump since Feb. 23, to 1,640.76. The measure has still tumbled 22 percent since the government said on Nov. 25 it would seek a “standstill” on Dubai World’s debt repayments. Credit-default swaps dropped 7 basis points to 592, according to prices from CMA Datavision.
“This was a smart move by Emaar and the government because it cushioned the recent drop and gave a boost to the market,” said Haissam Arabi, chief executive officer of Gulfmena Alternative Investments in Dubai. “Technically we were expecting somewhat of a rebound, but it doesn’t take away from the fact that this could be short lived.”
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