Stock News: Dubai Pulls Back, Qatar Starts To Recover
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Stock News: Dubai Pulls Back, Qatar Starts To Recover

Stock News: Dubai Pulls Back, Qatar Starts To Recover

Wednesday is the last day when retail investors, who dominate Dubai’s market, can subscribe for shares in Emaar’s malls unit.

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Dubai’s bourse pulled back in early trade on Wednesday as leading developer Emaar Properties retreated from a three-week high, while Qatar’s index began recovering after declining for several days.

The Dubai index fell one per cent as Emaar slid 1.3 per cent, erasing gains made in the previous session. Wednesday is the last day when retail investors, who dominate Dubai’s market, can subscribe for shares in Emaar’s malls unit.

Cashing out of the parent company to raise money for last-minute subscriptions to the IPO “might be one of the reasons” why Dubai is retreating, said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi.

The U.S.-led military campaign against the Islamic State group could be another contributing factor, prompting investors to book profits after solid gains in the last few weeks and ahead of the Eid al-Adha holidays.

“The geopolitical environment has been more challenging in the last few days and some market participants may have decided to reduce their exposure,” Henin said.

However, Gulf financial markets in general still show no significant concern about the events in Syria and Iraq; currency forwards and credit default swaps have barely moved.

The initial public offer of Emaar Malls Group is likely to be priced at Dhs2.90 a share, the top of its range, two sources familiar with the matter said on Wednesday.

Institutional investors have two more days to buy in, although Emaar has said their tranche of the offer was fully subscribed just one day after its launch.

Abu Dhabi’s bourse was nearly flat on Wednesday morning amid a mixed performance by blue chips. Egypt’s benchmark was also almost unchanged.

Qatar’s main index edged up 0.2 per cent, led by Barwa Real Estate which added 2.3 per cent.


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