Arabtec helps Dubai stock index pull through



A late surge in Arabtec shares helped to ensure Dubai's stock market ended the last day of the trading week in the black.

The Dubai Financial Market yesterday closed 1.1 per cent higher at 4,494.37, ending a three-day losing streak.

The main index, however, finished the week 1.5 per cent lower compared with last Thursday’s close.

Arabtec shares were the big gainers after Egypt’s housing minister said the company’s US$40 billion housing project will commence construction next year, downplaying talks of delays to the project.

Shares of the construction company rose 6.1 per cent in heavy afternoon trading, ending the day at Dh3.97 each.

Dubai's gains were not replicated in the capital, however. The Abu Dhabi Securities Exchange General Index ended the day down 0.4 per cent at 4,797.90, dragged by a 1.9 per cent drop in the index heavyweight FGB.

Aldar Properties ended the day up 0.9 per cent at Dh3.19 for each share, following an announcement that its credit rating had been upgraded to investment grade by Moody’s.

The rating agency cited the reduction of the developer’s financial leverage and development risk, and an increase in recurring rental following the opening of Yas Mall and other properties.

Meanwhile, shares in Dana Gas closed unchanged at 61 fils after reports that the company was in talks with the Egyptian government to secure a more competitive price for some of the natural gas it extracts in the country.

jeverington@thenational.ae

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Tips on buying property during a pandemic

Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.

While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.

While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar. 

Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.

Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.

Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities. 

Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong. 

Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.

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