After the fall, Dubai rebounds

Dubai shares rebounded strongly after three straight sessions of losses on Wednesday as investors piled back into beleaguered Arabtec Holding.

Shares in Abu Dhabi and Saudi Arabia also closed higher.

The Dubai Financial Market General Index jumped by 2.4 per cent to 3,646.08.

Arabtec shares, which had shed a quarter of their value since the start of the month, finally reversed direction after it published further details of its recapitalisation plan, first floated last week.

The construction company’s shares ended the day 15 per cent higher at 96.6 fils, even as analysts remain sceptical about its prospects.

“There wasn’t that much new news in their disclosure, with the future strategy for the company being outlined next week,” said Sanyalak Manibhandu, the head of research at NBAD Securities in Abu Dhabi.

“Investors were looking at the fact the stock’s gone down so much for so many days that there’s a reason to buy back now and test the range a little bit.”

Arabtec’s gain prompted investors to flood back to other real estate and construction stocks.

Union Properties and Drake & Scull International surged 10.8 per cent and 6.4 per cent respectively, while heavyweight Emaar Properties finished 2.8 per cent higher.

In the capital, the Abu Dhabi Securities Exchange General Index finished up 0.7 per cent at 4,637.52, thanks to gains by Etisalat and Aldar Properties.

FGB and NBAD shares closed up 0.4 per cent and 1 per cent respectively, after the soon-to-merge banks announced a pro forma net profit of Dh11.37 billion for 2016.

In Saudi Arabia, the Tadawul closed up by 0.1 per cent.

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