Deyaar Development PJSC (DEYAAR) headed for the biggest gain in three weeks after the Dubai-based builder of residential and commercial property sold real estate valued at 170 million dirhams ($46 million).
The shares climbed 3.4 percent, set for the biggest advance since May 9, to 42.4 fils at 1:36 p.m. in Dubai. The stock was the second-most active on Dubai’s benchmark index, after Arabtec Holding Co. (ARTC), with about 113 million shares traded, or four times the three-month daily average. Arabtec, a construction company, jumped 7.2 percent and Dubai’s benchmark DFM General Index (DFMGI) rose 0.8 percent.
Dubai, home to the world’s tallest tower, is embarking on new developments including a district that includes the world’s biggest shopping mall and a complex of five theme parks. The emirate’s real-estate market is rebounding after property prices plunged at the onset of the global credit crisis in 2008. The recovery helped Deyaar more than double profit in the first quarter. The company reported a 2.9 billion-dirham loss in 2010.
The announcement “is improving investors’ confidence in the restructuring and recovery of the company,” said Marwan Shurrab, vice-president at Dubai-based Gulfmena Investments Ltd.
Arabtec shareholders on record by tomorrow are eligible for a rights offer. “It’s trading today ex-rights issue, and that removes selling pressure of investors that feared dilution,” Shurrab said.
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