DP World surged to a three-week high following a newspaper report saying the ports operator was considering selling more shares to increase its free float and become eligible as a member of the London FTSE 100 index.
DP World stock climbed 6.2 percent to $0.43, its highest level since February 14.
The company’s management is considering a rights issue together with a simultaneous sale of some of parent firm Dubai World’s 77 percent stake, The National newspaper reported on Sunday.
In January, DP World said it would list on the London Stock Exchange.
“We believe the appetite for equity in the potential new listing is likely to be solid, given the emerging market exposure and excellent cash flow generation offered by the stock, partially offsetting its perceived Dubai risk premium,” Ian Munro, MAC Capital head of research wrote in a note to clients.
The analyst said DP World should rally towards MAC Capital’s 12-month price target of $0.66.
The stock was down 2.3 percent since majority owner Dubai World asked for a debt standstill in November as it tries to restructure multi-billion dollar debts.
Banks were the main drag as Kuwait’s index fell for a second session in three, with investors unmoved by end-of-week gains in commodities and world stocks.
National Bank of Kuwait fell 1.5 percent a day before its capital increase is set to be implemented, which will dilute existing shareholdings.
“There are investors who like the stock, but think it is better to sell today and buy back tomorrow,” said Essa al-Hasawi, a dealer at Noor Financial Investment Co in Kuwait.
Kuwait Finance House fell 1.6 percent, while Gulf Bank dropped 2.6 percent.
The index fell 0.3 percent to 7,413 points. Kuwait is the top performing regional index this year, bolstered by Zain’s possible $9 billion asset sale and Kuwait’s government budget that is seen boosting non-oil sectors. Zain slipped 1.5 percent.
“Kuwait’s uptrend is still in place and today is just some profit-taking,” added Hasawi.
Bank Muscat was the main support as Oman’s index ended higher for a first session in three as gains on global markets spurs local buying.
Bank Muscat climbed 1.6 percent, clawing back some its losses from a three-session, 2.3 percent decline.
“Bank Muscat is still reasonably priced and so it drew some buyers today,” says Sayed Quadry, vice-president of business development at Amwal Investment in Muscat.
Oman Cables Industry added 2.2 percent and Oman Cement Co rose 0.7 percent.
The index climbed 0.5 percent to 6,683 points as volumes hit a seven-session high.
“There was some foreign buying coming in after international markets went up over the weekend and oil has been stable for some time,” added Quadry.
“But let’s not get too carried away – we need to see how the market performs for the next few days.”
Banks lead Abu Dhabi’s index to its highest close in nearly two weeks, tracking gains in other Gulf Arab bourses as global sentiment rose.
National Bank of Abu Dhabi climbed 2.8 percent and Abu Dhabi Commercial Bank rose 2.4 percent.
Aldar Properties added 0.6 percent, recovering slightly from Thursday’s eight-month low as investors show little reaction to its downgrade by ratings agency Moody’s.
“Sentiment is not that great after the Moody’s downgrade, which will have an adverse impact on the market, but investors have absorbed a lot of bad news recently and so this is just one more thing on their plate,” said Vyas Jayabhanu, head of investments, Al Dhafra Financial Broker.
The index climbed 0.8 percent to 2,747 points, its highest finish since February 23.
Samba Financial Group was the most notable gainer as Saudi Arabia’s index hit a 19-week closing high, buoyed by firm oil prices and end-of-week gains on world markets.
Samba climbed 1.3 percent, while Saudi Basic Industries Corp (SABIC) added 0.5 percent to a fresh 16-month high.
The index climbed 0.3 percent to 6,560 points, its highest finish since October 26. (Reuters)
Follow us on
