UAE stocks sustain rally; Emaar climbs

Dubai?s benchmark DFM General Index climbed 1.63 per cent to 4,124.77 at the close on Monday, making it the fourth-best performer globally. Emaar Properties advanced 1.65 per cent to Dh9.25 after the developer of the world?s tallest tower Burj Khalifa said it planned to sell shares in its retail unit.

Rating agency, Standard & Poor?s said on Monday it planned no rating action relating to Emaar Properties in the wake of the developer?s move to spin off its retail unit.

Stuart Anderson, managing director and regional head, Middle East, of Standard & Poor?s, said the debt roll over agreement signalled Dubai?s improving financial stability and the support the emirate continues to get from Abu Dhabi. He declined to comment on the roll over?s impact as S&P did not rate the Government of Dubai.

On Sunday, in two separate deals, Abu Dhabi?s Department of Finance and the UAE Central Bank agreed to refinance Dubai?s $20 billion in loans and bonds for five years at a fixed rate of one per cent that is well below the four per cent coupon rate that was paid on the maturing debt. Analysts say the move is expected to boost confidence on Dubai?s financial stability and ease pressure on Dubai?s government related entities in contributing to the government?s cash-flow requirements.

Emaar said on Saturday it planned to list 25 per cent of its shopping malls and retailing unit in a public offer expected to raise around Dh9 billion. Emaar is in a comfortable funding position at the moment, Tommy Trask, director of corporate ratings at S&P, said at a media briefing. Trask said Emaar?s strong reputation with investors for delivering projects, plus the fact it has collected healthy deposits on the off-plan developments it was planning, meant it was very cash-rich.

via Business – UAE stocks sustain rally; Emaar climbs.