Font Size

- Aa +

Sun 31 Aug 2014 12:10 PM

Font Size

- Aa +

UAE and Qatar rebound, as Emaar surges on malls unit IPO plan

Stock markets in Qatar, UAE dipped in the last session

UAE and Qatar rebound, as Emaar surges on malls unit IPO plan

Bourses in the United Arab Emirates and Qatar rebounded in early trade on Sunday and Dubai developer Emaar Properties surged after the firm said it would launch an initial public offer for its malls unit next month.

Stock markets in both countries dipped in the last session as passive funds tracking MSCI's frontier market index liquidated part of their holdings in UAE and Qatari stocks.

MSCI upgraded the UAE and Qatar from frontier to emerging market status in May and arranged for frontier funds to exit those countries through a series of monthly sales.

Qatar's bourse, which dropped 3.1 percent on Thursday, rose 2.2 percent shortly after opening on Sunday as stocks that were the main drags in the last session became the main supports.

Islamic lender Masraf Al Rayan jumped 5.4 percent and mobile phone operator Ooredoo surged 7.6 percent.

Abu Dhabi's bourse rose 0.5 percent on the back of its heaviest MSCI index components. National Bank of Abu Dhabi and Abu Dhabi Commercial Bank rose 2.1 percent each, and First Gulf Bank added 0.6 percent.

Dubai's index rose 1.6 percent largely on the back of Emaar, the emirate's largest listed developer, which surged 6.3 percent to 10.90 dirhams, its highest level since May.

The company said on Sunday that it would launch an initial public offer for its malls unit next month in what will be the emirate's largest share sale in recent years. Emaar plans to sell at least 15 percent of the malls and retail unit on the Dubai Financial Market and to list the shares in October, a spokesman told Reuters.