Font Size

- Aa +

Mon 1 Sep 2014 12:00 PM

Font Size

- Aa +

Property stocks lift UAE markets

Shares in Emaar surged again after strong trading yesterday

Property stocks lift UAE markets

Property firms, led by Dubai's Emaar Properties which said on Sunday that it would float its malls unit in September, lifted stock markets in the UAE in early trade on Monday.

Shares in Emaar, the biggest listed developer in Dubai, surged 6.7 percent on strong volume and dominated trading in the emirate. Dubai's main index rose 1.9 percent.

The initial public offer of Emaar's malls and retail unit will be one of the largest equity sales in the Middle East since 2008, underlining Dubai's recovery from a credit crisis that forced many state-linked developers to stall projects.

The firm had initially revealed in March its intention to sell up to 25 percent of the unit in an offer likely to raise 8 to 9 billion dirhams ($2.18-$2.45 billion). It will use proceeds from the sale to pay a special dividend to its shareholders.

Smaller developer Deyaar added 1.6 percent after saying it would soon start sales at a new residential and hotel project in Dubai. Shares in Union Properties rose 0.4 percent.

Abu Dhabi's benchmark added 0.5 percent as that emirate's largest listed developer, Aldar Properties, jumped 2.7 percent after announcing a sale of a residential tower for an undisclosed value. Another Abu Dhabi-listed developer, Eshraq Properties, climbed 0.8 percent.

Qatar's bourse slipped 0.1 percent as heavyweight conglomerate Industries Qatar edged down 1.0 percent and Commercial Bank of Qatar fell 0.9 percent.