Dubai shares rose for a second time this week, helping gains in Persian Gulf markets, after Dubai World’s debt accord last week boosted investor confidence and improved the outlook for company earnings. Emaar Properties PJSC, builder of the world’s tallest skyscraper and the company with the biggest weighting on the benchmark index, climbed 0.8 percent. Aramex PJSC, the Middle East’s biggest courier company, surged to a two-year high. The DFM General Index rose 0.4 percent to 1,627.15 at the 2 p.m. close in the emirate, bringing the gain since the Dubai World agreement on Sept. 10 to 2.2 percent. Qatar’s QE Index advanced 0.7 percent on its first trading day this week.
Dubai World’s agreement caused a “bounce” in local shares, said Julian Bruce, director of equity sales at EFG- Hermes Holding SAE in Dubai. Gains in Dubai shares may be limited as “volumes are retreating again and foreign investor interest is waning already,” Bruce said. About 97 million shares traded in Dubai today compared with a six-month daily average of 146 million.
Dubai World, one of three main state-owned holding companies, last week received approval from creditors to alter the terms on $24.9 billion of debt. The agreement is “credit positive” for banks in the United Arab Emirates, Moody’s Investors Service said on Sept. 13. The DFM Financial Investment Index advanced 1 percent to the highest since May 24.
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