Stocks lift on news of Dubai World creditor deal

Sharp falls on Egypt's stock exchange weighed on most Gulf markets but Dubai bucked the trend as Dubai World agreed a deal with all its creditors

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Banking and property stocks in Dubai overcame a sell-off that weighed on other markets across the region as Dubai World agreed to a final deal with all its creditors.

The Dubai Financial Market General Index reversed intraday losses to end 0.5 per cent higher at 1,529.40 points, while the Abu Dhabi Securities Exchange (ADX) General Index ended marginally lower at 2,628.98 points.

Dubai World said yesterday it had signed a final deal with all creditors as part of the Dubai Government-owned group's restructuring of US$24.9 billion of debt.

Bellwether stocks such as Emaar Properties and Arabtec Holding helped to boost the local market as their shares rose 1.3 per cent to Dh3.04 and 2.6 per cent to Dh1.58, respectively.

Etisalat opened higher in Abu Dhabi before trading flat at Dh11 after it announced a dividend payout to shareholders.

The telecommunications giant will distribute a final dividend of 35 fils a share for the second half of last year, bringing the total dividends for the year to 60 fils, it said in a statement on the ADX website.

Most other Gulf markets tracked a sharp decline on the Egyptian Exchange, which resumed trading yesterday for the first time in more than seven weeks because of political unrest in the country.

The benchmark EGX 100 index ended 8.9 per cent down.

Kuwait's market closed down 0.6 per cent at 6,294.80; Qatar's benchmark index dropped 0.5 per cent to 8,295.26; Saudi shares rose 0.3 per cent to 6,362.42; Muscat's measure edged 0.1 per cent higher to 6,401.54; and Bahrain's bourse ended 0.5 per cent up at 1,418.59.