Dubai shares regain winning form with a lift from Nakheel

Blue chips propelled the Dubai measure higher.

Dubai shares broke their losing streak yesterday as property companies climbed the day after Nakheel announced a deal with 75 per cent of its trade creditors. The Dubai Financial Market General Index closed 0.5 per cent higher at 1,469.98, led by Emaar Properties. The shares of the largest listed developer in the region rose 1.1 per cent to Dh3.10. Emaar accounted for almost half the value of shares traded on the bourse yesterday.

Union Properties advanced 1.3 per cent to 36.90 fils. Late selling pressure in Deyaar pushed the developer's shares down by 3.4 per cent to 31 fils. Emirates NBD, the country's largest lender by assets, gained 2 per cent to Dh2.48. "Investors are happy about the Nakheel announcement. They bought [yesterday] on the payment story," said Yazan Abdeen, a fund manager at ING Investments Management in Dubai.

Institutional investors could return to target selective stocks that offer attractive value following this week's declines, he said. The Abu Dhabi Securities Exchange General Index retreated 0.1 per cent to 2,509.56. Shares of Aabar Investments rose 5.1 per cent to Dh1.44, rebounding from heavy losses early in the week. However, a drop of 1.4 per cent for both Etisalat and Aldar Properties - to Dh10.30 and Dh2.72, respectively - weighed heavy on the index.

Elsewhere in the region, Muscat closed 0.2 per cent higher. Kuwait shares closed 1.7 per cent lower while Bahrain and Qatar indexes dropped 1.1 per cent and 0.7 per cent, respectively. The Saudi bourse was closed. [e-mail]