Dubai World debt deal pushes emirate's bourse into the black

Market Wrap: Dubai World's announcement that it has agreed a final deal with creditors helped the emirate's bourse close up.

Banking and property stocks in Dubai reversed a sell off that weighed on other markets across the region as Dubai World agreed a final deal with all its creditors.

The Dubai Financial Market General Index reversed intraday losses to end 0.5 per cent higher to 1,529.40 points and the Abu Dhabi stock exchange ended marginally lower at 2,628.98 points.

Port and logistics conglomerate Dubai World said Wednesday it signed a final deal with all its creditors as part of the Dubai government-owned conglomerate's restructuring of nearly $25 billion worth of debt.

Bellwether stocks such as Emaar Properties and Arabtec helped boost the local market as shares in the companies rose 1.3 to Dh3.04 and 2.6 per cent to Dh1.58 respectively.

Etisalat, the UAE's biggest company by market capitalisation opened higher before trading flat at Dh11 as it announced a dividend payout to shareholders.

The telecoms giant will distribute a final dividend of Dh0.35 per share for the second half of 2010, bringing the total dividends for the year to Dh0.60, it said in a statement on the Abu Dhabi stock exchange website.

Most other Gulf markets tracked a sharp decline on the Egyptian stock exchange, which resumed trading today for the first time in more than seven weeks because of political unrest in the country.

The benchmark EGX 100 index ended 8.9 per cent down to close at 5142.71 as foreign investors led a sell-off in the first trading session since January 27.

Kuwait's market closed down 0.6 per cent at 6294.80; Qatar's benchmark index dropped 0.5 per cent to 8295.26 and Saudi shares trade almost flat at 6347.92.