Dubai bourse soars as Arabtec surges to 15% daily limit

Dubai's main index sees biggest daily rise since last September ahead on Arabtec press conference
By Reuters
Wed 02 Jul 2014 02:13 PM

Dubai's bourse jumped for a second day on Wednesday 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 closed up 7.9 percent, its biggest daily rise since last September, while Arabtec surged to its 15 percent 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 percent stake owned by former chief executive Hasan Ismaik, who resigned last month.

"Investors are expecting a positive outcome from the press conference," said 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," said Shakeel Sarwar, of asset management at Securities & Investment Co inBahrain.

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