Dubai: Dubai shares posted the biggest two-day gain in more than a year, and Abu Dhabi’s index added the most since March on bets Dubai World would make a last-minute move to avoid a default on its property unit.
Emaar Properties PJSC, the United Arab Emirates’ biggest property developer, jumped 6.8%, while National Bank of Abu Dhabi, the country’s second biggest lender by assets, increased the most in 10 months. The DFM General Index rose 3.3% to 1,695.35, bringing its two-day gain to 11%, the most since October 2008. Abu Dhabi’s measure added 4.5%, the biggest one-day jump since 24 March.
Dubai’s index has tumbled 19% since Dubai World, the state-owned holding company, said on 25 November it would seek a standstill agreement on its debt repayment, including for property unit Nakheel PJSC. The firm’s $3.52 billion (Rs16,368 crore) Islamic bond matures on Monday. Dubai World began talks with banks two weeks ago to restructure $26 billion.
“The market has come to a critical level and many investors believe the recent sell-off was not justified,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage Llc in Abu Dhabi. “We already know that there were meetings with the banks and there is a buzz that there might be agreements with the bondholders, so the market is remaining really hopeful.”