Dubai Investments jumped more than 7 per cent after the publicly listed conglomerate revealed plans to acquire 60 per cent of the Dubai investment bank Al Mal Capital.
DIC, whose largest shareholder is state owned Investment Corporation of Dubai, rose 7.3 per cent to Dh2.34.
“The board further discussed and approved acquisition of 60 per cent of the share capital of Al Mal Capital,” DIC said in a regulatory disclosure on the Dubai bourse website.
“The purchase price will be based on the net asset value”, according to the latest fourth quarter financial statements and pending required transaction documents and regulatory approval, DIC said.
Dubai’s broader market rose sharply after US oil prices jumped more than eight per cent on Friday, the strongest one day jump in nearly three years.
Liquidity is still tight, but the rebound is due to oil prices, its the first time they’ve closed up in weeks,” said Nabil Farhat, a partner at Al Fajer Securities in Abu Dhabi.
West Texas Intermediate jumped to $48.24 a barrel after Bajer Hughes said the US’ rig count dropped by 94, leaving 1,223 rigs in service. The development raised concerns that another 300 rigs could be out of operation in the next few months.
Emaar Properties jumped 4.3 per cent to Dh6.99. Dubai Islamic Bank rose 3.3 per cent to Dh6.74. Arabtec Holding rose 4.8 per cent to Dh3.04.
The Dubai Financial Market General Index advanced 2.5 per cent to 3,768.57 points.
The Abu Dhabi Securities Exchange General Index rose 1.3 per cent to 4,518.90 points.
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