Dubai Shares Rise as Dubai World Debt Deal Boosts Confidence; Aramex Gains

Dubai shares rose for a second time this week, helping gains in Persian Gulf markets, after Dubai World’s debt accord last week boosted investor confidence and improved the outlook for company earnings. Emaar Properties PJSC, builder of the world’s tallest skyscraper and the company with the biggest weighting on the benchmark index, climbed 0.8 percent. Aramex PJSC, the Middle East’s biggest courier company, surged to a two-year high. The DFM General Index rose 0.4 percent to 1,627.15 at the 2 p.m. close in the emirate, bringing the gain since the Dubai World agreement on Sept. 10 to 2.2 percent. Qatar’s QE Index advanced 0.7 percent on its first trading day this week.

Dubai World’s agreement caused a “bounce” in local shares, said Julian Bruce, director of equity sales at EFG- Hermes Holding SAE in Dubai. Gains in Dubai shares may be limited as “volumes are retreating again and foreign investor interest is waning already,” Bruce said. About 97 million shares traded in Dubai today compared with a six-month daily average of 146 million.

Dubai World, one of three main state-owned holding companies, last week received approval from creditors to alter the terms on $24.9 billion of debt. The agreement is “credit positive” for banks in the United Arab Emirates, Moody’s Investors Service said on Sept. 13. The DFM Financial Investment Index advanced 1 percent to the highest since May 24.

Emaar advanced to 3.73 dirhams. Aramex surged 4.6 percent to 1.83 dirhams, the highest since September 2008.

Abu Dhabi’s ADX General Index and Bahrain’s measure increased 0.3 percent. Oman’s MSM30 Index climbed 0.5 percent and Kuwait’s benchmark was little changed. Saudi Arabia’s Tadawul All Share Index retreated 0.4 percent at 2:36 p.m. in Riyadh.

Exchanges in Bahrain and Oman also opened for the first time this week, after the Muslim holiday that marks the end of Ramadan.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

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