UAE markets move after firms disclose exposure to embattled firm Abraaj

Big 5

Dubai’s Union Properties rose in early trade after it said on Wednesday the company and its unit does not have any exposure to embattled private equity firm Abraaj, which filed for provisional liquidation earlier this month.

United Arab Emirates’ top securities regulator has asked UAE-listed firms to declare their exposure to Abraaj, Reuters reported on June 21.

Air Arabia was down 0.7 percent, bringing its total losses to 5.3 percent for the week in the wake of disclosing it had a $336 million overall exposure to Abraaj.

In Abu Dhabi, Dana Gas declined 2.9 percent after the energy explorer said on Wednesday it holds $6 million in a fund managed by an affiliate of Abraaj Investment Management Limited, the investment management arm of Abraaj.

Last week, a court in the Cayman Islands, where Abraaj is incorporated, appointed provisional liquidators for Abraaj Holdings and AIML as the firm tries to restructure its debt.

Abraaj has been bruised by a dispute with some of its investors over the use of their money in a $1 billion healthcare fund. The group has denied it misused the funds.

Dubai’s Emaar Properties rose in early trade on Wednesday, providing support for a rebound on the emirate’s main equity index.

Emaar was up one percent, while the Dubai Financial General Index was up 0.4 percent, reversing losses made on Tuesday.

The Abu Dhabi Securities Exchange General Index was down 0.4 percent.

In Qatar, the benchmark was up 0.3 percent led by industrials and utilities. Industries Qatar was up one percent and Qatar Electricity and Water Company was up 2.2 percent.

Elsewhere in the region, the Saudi Tadawul All-Share Index was up 0.2 percent. The benchmark was led by Saudi Basic Industries, which was up 0.6 percent.

Source: Reuters