Dubai’s bourse jumps for a second day as investors bet on good news from builder Arabtec, which later in the afternoon will hold its first news conference since last month’s management reshuffle.
Dubai’s main index closes up 7.9 per cent, its biggest daily rise since last September, while Arabtec surges its 15 per cent daily limit, recovering further from a slump that at one stage wiped out more than two-thirds of the stock’s value.
Investors hope Arabtec will clarify its strategy and its relationship to major shareholder Aabar Investments, and address the fate of a 28.85 per cent stake owned by former chief executive Hasan Ismaik, who resigned last month.
“Investors are expecting a positive outcome from the press conference,” says Ali Adou, portfolio manager at The National Investor.
Market players say there are rumours that a government-related entity will take over the stake. “The market is basically pre-empting that,” says Shakeel Sarwar, of asset management at Securities & Investment Co in Bahrain.