Dubai bourse hits three-month high
Dubai construction giant Arabtec has surged, helping Dubai's index hit a three-month high as bullish investors back Thursday's Dubai World's debt restructuring offer.
Arabtec climbed 11.6 per cent. It is a trade creditor of Dubai World unit Nakheel.
"Arabtec was lagging too much compared with the market, especially Emaar, says Yousry Kassem, institutional equity sales trader at EFG-Hermes.
In the three weeks to Thursday's close Arabtec rose 11.5 per cent, while Dubai's index added 16.4 per cent over the same period.
Nakheel trade creditors will be offered a large-scale Islamic bond as part of the debt restructuring plan, a source close to the company said on Sunday.
On Saturday, Arabtec's chief executive Riad Kamal told Reuters the firm was owed money by Nakheel, but refused to say how much.
"I think the offer (from) Dubai World and the government of Dubai has been more than the expectations of the market," said Kamal. "It was quite a generous offer and creditors should consider the offer very carefully and I see no reason why they should not accept it and move on."
Dubai's index climbed 1.9 per cent to 1,881 points, its highest finish since December 16.
National District Cooling Co (Tabreed) climbed 4.1 per cent after it sold its 50 per cent stake in its Jordanian subsidiary without disclosing the deal's financial terms.
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