Construction companies and building contractors in Dubai were cheered by Nakheel's announcement that it is closer to resolving its debt restructuring.
The real estate developer behind Dubai's manmade islands said it has more support from than 91 per cent of its trade creditors by value for a restructuring program. It needs 95 per cent approval to go forward with a debt restructuring programme.
"Nakheel needs only 4 per cent to go forward with its plan. I think it's very achievable," said Mohamed Khaled, a relationship manager at Prime Securities, though he voiced concerns over the length of time it would take for the restructuring to take place.
In Dubai, Emaar Properties rose 2.06 per cent to Dh3.46 and Arabtec ticked 1.57 per cent higher to Dh1.94.
Drake & Scull International also gained nearly 1 per cent to Dh1.03.
"The market is thirsty for any positive catalyst," Mr Khaled said.
In Abu Dhabi, Rak Properties gained 2.3 per cent to 44 fils but Aldar slipped 0.4 per cent to Dh2.25.
Dana Gas, although the most actively traded stock in Abu Dhabi with volumes of shares breaching 8.2 million, closed flat at 73 fils.
The Dubai Financial Market (DFM) General Index closed 1.1 per cent higher to 1,621.7 points, and the Abu Dhabi Securities Exchange slipped marginally to 2,702.28 points.
Volumes of traded shares are at lows of around 40 million and 60 million on the DFM and ADX respectively.
"There is still no news around so any time anything comes out, people are reacting to just one story," said Mr Khaled.
Elsewhere in the region; Kuwait rose 0.3 per cent to 6,962.20; Bahrain slipped 0.02 per cent to 1,427.50 points; Oman fell 0.1 per cent to 6,745.66 points; Qatar increased 0.2 per cent to 8,664.21 points and the Saudi Tadawul All-Share Index moved 0.2 per cent higher to 6,628.12 points.
