[2008-04-01]  DFM recovers as ADSM sees second day of losses
Dubai shares rebounded yesterday, rising two per cent to close at 5,351.89 while the measure in Abu Dhabi entered its second day of losses this week with a drop of one per cent at 4,556.37 points. UAEs Air Arabia, the biggest low-cost carrier in the Middle East and North Africa, ended its three days of declines after a good rating from a Kuwaiti investment company while Abu Dhabi Commercial Bank (ADCB) dropped after a report that it plans to sell bonds.

At least 285 million shares traded on the Dubai Financial Market (DFM) General Index, with value amounting to Dh1.2 billion. The measure said Saturday that foreign investors bought Dh2.095 billion of shares last week, almost as much as the Dh2.007 billion they sold.

The Abu Dhabi Securities Market (ADSM) Index gained less than 0.1 per cent this quarter on concern that a US recession will keep investors away.

"Investors are deeply worried about the situation in the US," said Mohamed Dwaikat, a senior broker at Abu Dhabi-based Al Fajer Securities, in a Bloomberg report. "More hits there may mean selling here as foreign investors seek to cover positions."

Dubai-based DP World, an international marine port operator, surged 9.2 per cent to $0.95 on the Dubai International Financial Exchange.

Sharjah-based Air Arabia rose 2.8 per cent to Dh1.86 on DFM after being rated "buy" in new coverage by Global Investment House with a price estimate of Dh2.21.

National Central Cooling Co, also known as Tabreed, topped DFM with a surge of 8.6 per cent to Dh2.40 followed by Kuwaiti-based Grand Real Estate Projects Co, which gained 6.9 per cent to Dh4.20.

ADCB, the countrys third-biggest bank by assets, lost 2.3 per cent to Dh6.47 on ADSM as it was reported of planning to raise Dh4.8 billion by selling convertible debentures. A debenture is a debt instrument without the security of a physical asset or collateral.

Aabar Petroleum Investments Co slumped 1.9 per cent to Dh3.13, falling for a third day. EFG-Hermes Holding SAE reduced its share price estimate for the former oil and gas explorer to Dh2.66 from Dh2.91.



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