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Thu 25 Sep 2008 10:21 AM

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Shuaa shares rebound after 'black Wednesday'

Early trading sees Shuaa Capital rise 2.5%, after previous day's 11.4% fall.

Shares in Dubai's Shuaa Capital rose 2.53 percent early on Thursday - clawing back losses after the Dubai Financial Services Authority (DFSA) sanctioned and fined the bank almost $1 million for alleged share manipulation.

The firm's shares plunged 11.43 percent on Wednesday after DFSA said it had sanctioned Shuaa after an "extensive and complex investigation" into trading irregularities in the shares of DP World.

The DFSA said Shuaa Capital had intentionally set about raising the closing price of DP World shares on March 31 so that it could mark up the book value of its proprietary portfolio in those shares for accounting purposes.

Shuaa did this by standing in the market during the closing minutes of trading with bid prices well above those at which the shares had been trading at that day.

Dubai's main index traded 1.04 percent lower at 3,849.58 points after three trading days of falls. (Reuters)