As predicted stock markets were in buoyant form yesterday after the news of the Nakheel and Dubai World debt restructuring plan began to materialize. Both the Abu Dhabi and Dubai stock markets reached their highest levels since November 2009 and January 2010 when the government first announced its intention to back a restructuring plan for the two company’s outstanding debts.
The Abu Dhabi Securities Exchange (ADX) was up by 1.2% and the Dubai Financial Market was also up by an impressive 4.3%, many other increases were also evident in the financial services sector and among Real Estate companies. Also in Abu Dhabi Aldar shares closed up by 5.8% and Sorouh made gains of 6.75%. Most of the major players in the Abu Dhabi banking sector also rose by an average of at least 5%.
In Dubai there were also noticeable increases, Emaar went up by 8.8% and Arabtec shares rose by 6.7% and DFM security shares closed an impressive 7.8% higher than they had been at the start of the day.
One trader present at the stock market yesterday said UAE markets have been operating on average 30% below the performance level of other areas of the Gulf and this was largely attributed to the continuing uncertainty surrounding Dubai World.Paul Holdsworth, Staff Writer, Gulf Jobs Market News