Taqa energy firm helps fuel ADX gains

Energy firm Taqa helped fuel gains on Abu Dhabi's bourse Wednesday after proposing a 10 fils-a-share dividend on full-year net income. The Abu Dhabi Securities Exchange (ADX) rose 0.27 per cent to 2,630.11 with property stocks also coming into focus. Taqa gained the most since October 2010, jumping 4.76 per cent to Dh1.33, despite reporting a loss for the fourth-quarter. Aldar climbed 6.62 per cent to Dh1.46 and Sorouh rose 5.84 per cent to Dh1.44 as investors continue to pour money into both companies after news broker earlier this week of a possible merger. "In terms of Aldar and Sorouh, we do not know how long a merger will take but both stocks will get to a point where they become resilient even if buying interest slows down," said Haissam Arabi, chief executive and fund manager at Gulfmena Investments. First Gulf Bank tumbled 1.95 per cent to Dh10.05 while etisalat lost 0.11 per cent to Dh9.25. Of the 27 companies traded, 17 rose, eight fell and two closed unchanged. Some 127.3 million shares worth Dh183.4 million were traded. Elsewhere in the region, Saudi Arabia's index added 0.62 per cent, Qatar's measure was little changed, Bahrain's bourse slipped 0.27 per cent, Kuwait's gauge rose 0.25 per cent and Muscat's exchange edged 0.3 per cent higher. Dubai The Dubai Financial Market (DFM) General Index climbed to a more than one-week high yesterday as investors switched their focus to blue chip stocks. The bourse added 0.53 per cent to 1,691, its highest close since March 6, with Emaar jumping 1.97 per cent to Dh3.11 and Drake and Scull International gaining 1.94 per cent to Dh1.05. Telco du also saw some buying interest, rising 0.97 per cent to Dh3.11. "It is always a good sign to see interest in blue chips as typically they are the companies that move the market," said Haissam Arabi, chief executive and fund manager at Gulfmena Investments. "We have seen some profit-taking but investors are reshuffling [their portfolios] in preparation of round two of the rally; more foreign money is coming in, which is another healthy sign the market is firmly in a bull pattern," he added. Aramex rose 1.05 per cent to Dh1.92 after announcing it had signed a service partnership agreement with a South Korean company. Penny stocks saw some profit-taking with Tabreed declining 2.61 per cent to Dh1.49, Tamweel down 1.57 per cent to Dh1.25 and DFM dropped 0.81 per cent to Dh1.22. Of the 30 companies traded, 17 rose, 11 fell and two closed unchanged. Some 405.6 million shares worth Dh580.5 million were traded.