Aabar Investments was a surprise winner on a day when an influential index provider declined to upgrade the UAE to emerging market status. The Abu Dhabi Government-controlled Aabar said after the market closed on Monday that its board would meet this week to consider delisting from the Abu Dhabi Securities Exchange (ADX). Most traders had expected a significant fall in the company's shares but they closed 2.4 per cent higher at Dh1.68.
"There was some speculation in the market that Aabar stockholders will get a premium when the firm delists. This triggered buying," said Fadi al Said, a senior fund manager at ING Investments Management in Dubai. But analysts want to see more clarity on the issue. "It was a surprise announcement ? the market can benefit from further guidance on what are the reasons for making this move," said Ali Khan, the head of equities at Arqaam Capital in Dubai.
UAE bourses were also affected by MSCI Barra's announcement that it would not upgrade the country from "frontier" to "emerging" market status. The ADX General Index closed 0.43 per cent lower at 2,551.06, with banking and property stocks leading declines. Aldar dropped 2.79 per cent to Dh3.14, while Abu Dhabi Commercial Bank retreated 2.5 per cent to Dh1.54. The Dubai Financial Market General Index yesterday retreated 1.3 per cent to 1,542.07. Emaar Properties, which had gained more than 11 per cent over the first two sessions of the week, yesterday declined 2.9 per cent to Dh3.29.
Elsewhere, the Qatari and Muscat measures declined 0.4 and 0.7 per cent respectively, while Kuwait shares added 0.4 per cent. The Saudi Tadawul All-Share Index lost 1.3 per cent. skhan@thenational.ae
