Shares in Aabar Investments surged again yesterday as investors bid them up closer to the takeover price established by the Emirates Securities and Commodities Authority. The stock climbed 9.6 per cent to Dh1.72, for the second consecutive day approaching the 10 per cent cap set by the markets regulator. On Sunday, Aabar's biggest shareholder, the International Petroleum Investment Company, agreed to pay Dh1.95 a share rather than the Dh1.45 it had offered earlier.
The potential buyers in Aabar far outnumbered the sellers, resulting in relatively low volumes for the stock. "There is demand because everyone wants to capitalise on [the new offer] but nobody with good information wants to trade," said Hassan al Salah, the head of institutional trading at AlRamz Securities. The Abu Dhabi Securities Exchange General Index rose 0.3 per cent to 2,534 points, its third gain in four sessions. Etisalat slipped 0.5 per cent to Dh10.35. Its quarterly profit fell 21 per cent compared with the second quarter last year.
"Etisalat revenues were in line with expectations but net income fell short," said Irfan Ellam, a telecoms analyst at Al Mal Capital. "We still think the stock offers strong upside." Al Mal kept a "buy" recommendation on the stock, with its price target of Dh14.66 a 40 per cent premium on the current price. The Dubai Financial Market General Index was up 0.7 per cent to 1,518 points. Shuaa Capital finished ahead 2.8 per cent at Dh1.08.
Elsewhere in the region: Qatar was up 0.16 per cent at 6,924.11; Bahrain was ahead 0.17 per cent at 1,401.21; Muscat inched ahead 0.12 per cent to 6,226.77; Kuwait was up 0.13 per cent at 6,500.90; and the Saudi Tadawul All-Share Index gained 0.23 per cent to 6,131.30. firstname.lastname@example.org