Dubai market “PR rally” loses steam
The Dubai financial market general index (DFMGI) finished the first trading week of September lost one per cent to close at 5,171.95 points on Thursday, September 4.
Emaar lost 1.30 per cent to hit AED11.55. Earlier in the week on Sunday, the biggest developer in the GCC, in a well-timed announcement to the public (most GCC investors were back from holiday end of August, schools started on Sunday), clarified on timing and conditions of the listing of its subsidiary Emaar Malls Group (EMG). Emaar will float at least 15 per cent of EMG, the IPO shall be completed by October. “The estimated value of the Emaar Malls IPO is AED5 billion. ($1.36bn), which is sizeable for the UAE market, which has a capitalization of AED789 bn. ($215bn),” said Arjuna Mahendran, the chief investment officer at Emirates NBD wealth management.
Over the week, the marketing effect faded and investors focused on geopolitical issues.
Emirates NBD closed flat at $9.90. The biggest UAE lender in relation to assets confirmed earlier today that it plans to issue dollar-denominated bonds.
Arabtec and Deyaar Development closed unchanged. Mashreq bank lost the most, ending off 3.70 per cent at AED130.