Dubai: Dubai’s benchmark index ended flat after rising as much as 0.6 per cent as investors were stationed on the sidelines waiting for a new trigger. The Abu Dhabi index ended higher led by Abu Dhabi National Takaful.
The Dubai Financial Market General Index ended flat at 4,984.71. The UAE‘s biggest builder, Arabtec, which fell 0.42 per cent to close at Dh4.75 per share, was the most active stock by value. Emaar, which was the second most active stock by value, ended 0.45 per cent higher at Dh11.05 per share.
“We are waiting for a big new trend, but nothing is coming … all eyes are on the Emaar Mall IPO,” Sebastien Henin, head of asset management at The National Investor told Gulf News.
The developer of the world’s tallest tower started selling at least 15 per cent of shares in Emaar Malls Group from September 14, and plans to list them on Dubai Financial Market on October 2. The share sale is touted to be one of the biggest after the credit crises of 2008, when many companies were forced to restructure debts and stall projects.
At least 70 per cent of the Emaar Malls offering will be allocated to qualified institutional investors and 30 per cent to individuals. A minimum 10 per cent will be earmarked for Emaar shareholders as of September 10, while the Emirates Investment Authority reserved 5 per cent of the offering allocated to institutions.
Liquidity to pick up
“We should expect some activity, in terms of volatility and liquidity to pick up by beginning of October,” said Henin, who handles a portfolio worth $100 million..
Volumes have declined by a half to Dh550 million as most of the investors chased the Emaar Mall Group’s IPO, This compares to June’s volume of Dh1 billion, when volatility was high due to news flow at Arabtec.
Arabtec said on Tuesday it did not have any information on an agreement regarding Aabar buying shares from former chief executive officer Hasan Ismaik.
Ismaik, who resigned abruptly in June, holds about 28 per cent in the company. Ismaik had said earlier that he was in talks with Abu Dhabi state fund Aabar Investments to sell part of his stake.
On the index, out of a total of 31 shares traded on the exchange, shares of 10 companies declined, shares of 15 rose, while shares of the rest 6 companies remained unchanged.
In Abu Dhabi, the general index ended 0.43 per cent higher at 5,171.73. Out of a total of 34 companies, shares of 21 companies rose, while 8 of them declined and the other 5 remained steady.
Insurance firm Abu Dhabi National Takaful rose 14.92 per cent in trade, while Arkan Building Materials jumped 12.50 per cent.
