Dubai’s stock market recorded its biggest one-day gain in nine months as investors hoped for the end of an Arabtec-led market rout.
The Dubai Financial Market, which had shed 22.5 per cent of its value in June, gained 7.92 per cent yesterday, the most since September, closing at 4,389.94.
Brokers attributed yesterday’s gains to a slowing of margin calls on Tuesday, and signs of greater clarity from the management of Arabtec, alternately the darling and bête noire of the Dubai market.
Arabtec’s shares have been pummeled during the month of June, losing more than 60 per cent of their value – dragging the rest of the Dubai bourse with it – following the resignation of the chief executive Hasan Ismaik on June 18.
Since Mr Ismaik’s abrupt departure there has been widespread uncertainty about the commitment to the company of its Abu Dhabi shareholder Aabar Investments, which had reduced its shareholding to 18.85 per cent on June 12 (it currently stands at 18,94 per cent), and rumours that the contractor would cancel a number of high-profile projects.
Investors reacted positively to news that Arabtec's management would hold a press conference to address a number of the issues facing the company yesterday afternoon.
The company’s shares closed up 14.93 per cent at Dh3.31, even before the event started.
While the press conference did not address all issues facing the company, clarity on the company’s project book was especially welcome, according to Saad Chalabi, a trader at Abu Dhabi’s Al Ramz Securities.
“They’ve clarified a few things that they needed to clarify, specifically that there were no projects being cancelled and that everything’s going forward OK, especially their Egypt project,” he said, referring to the company’s US$40 billion affordable housing project with the Egyptian army, announced in March.
“That kind of guidance was required from management, and we’re happy that it’s finally out, which at least stabilised the stock, which therefore stabilised the rest of the market.”
Arabtec’s share rise had a knock- on effect on the rest of the bourse. Union Properties, Deyaar, Drake & Skull International, DFM and GGICO all closed up more than 14.5 per cent on the day.
Mr Chalabi said he expected the market to continue to rise during this morning’s trading, before investors begin to book profits later in the day.
“Over the next week we should see things begin to stabilise and the volatility should start to drop.”
jeverington@thenational.ae
Follow us on Twitter @Ind_Insights
Company%20Profile
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The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
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COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
COMPANY%20PROFILE%20
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
COMPANY%20PROFILE
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The%20specs
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How%20to%20avoid%20getting%20scammed
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Recipe: Spirulina Coconut Brothie
Ingredients
1 tbsp Spirulina powder
1 banana
1 cup unsweetened coconut milk (full fat preferable)
1 tbsp fresh turmeric or turmeric powder
½ cup fresh spinach leaves
½ cup vegan broth
2 crushed ice cubes (optional)
Method
Blend all the ingredients together on high in a high-speed blender until smooth and creamy.
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
Company%20profile
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Top tips
Create and maintain a strong bond between yourself and your child, through sensitivity, responsiveness, touch, talk and play. “The bond you have with your kids is the blueprint for the relationships they will have later on in life,” says Dr Sarah Rasmi, a psychologist.
Set a good example. Practise what you preach, so if you want to raise kind children, they need to see you being kind and hear you explaining to them what kindness is. So, “narrate your behaviour”.
Praise the positive rather than focusing on the negative. Catch them when they’re being good and acknowledge it.
Show empathy towards your child’s needs as well as your own. Take care of yourself so that you can be calm, loving and respectful, rather than angry and frustrated.
Be open to communication, goal-setting and problem-solving, says Dr Thoraiya Kanafani. “It is important to recognise that there is a fine line between positive parenting and becoming parents who overanalyse their children and provide more emotional context than what is in the child’s emotional development to understand.”
Ferrari
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Michael%20Mann%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Adam%20Driver%2C%20Penelope%20Cruz%2C%20Shailene%20Woodley%2C%20Patrick%20Dempsey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
COMPANY%20PROFILE%20
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What is the definition of an SME?
SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.
A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors.