Dubai shares fell on the last trading day of the week as investors wrestled with the implications of the bond deal by Emaar Properties.
The developer of the Burj Khalifa said on Wednesday that it would sell US$450 million in convertible bonds, and yesterday reported it received more than $3 billion in bids on the notes. "Investors did not understand the full impact of the Emaar bond on the stock," said Mohammed Ali Yasin, the chief investment officer at CAPM Investments in Abu Dhabi. "Some people may have read it negatively or stayed out of it."
Emaar fell 1.8 per cent to Dh3.73. Arabtec Holding dropped 0.4 per cent to Dh2.02 a share, while DFM Company, the operator of the Dubai Financial Market, lost 2.2 per cent to Dh1.75. The DFM General Index lost 1.1 per cent to 1,683.69, while the Abu Dhabi Securities Exchange General Index moved 0.1 per cent lower to 2,673.19. In Abu Dhabi, Etisalat, the country's largest telecommunications operator, was in focus as the stock resumed trading after the company confirmed its preliminary offer to buy 46 per cent of Kuwait's Zain.
Etisalat shares dropped 0.4 per cent to Dh10.75. Zain shares were halted yesterday and finished unchanged at 1.36 Kuwaiti dinars. Dana Gas led the losses in Abu Dhabi, moving 1.1 per cent lower to 83 fils. Elsewhere in the region: Bahrain's index remained unchanged at 1,444.76; Oman's bourse dipped 0.2 per cent to 6,472.76; Qatar's measure lost 0.2 per cent to 7,694.88; and Kuwait's index gained 0.8 per cent to 6,985.00. The Saudi Tadawul All-Share Index was closed for the day.
