Dubai surges ahead of Dubai World debt plan

Dubai's index makes its largest gain for three months as investors bet on a favourable Dubai World debt offer. The troubled government conglomerate is expected to announce a multi-billion dollar debt restructuring plan shortly. Dubai Financial Market climbs 9.6 per cent to a nine-week high, while Emaar Properties adds 7.5 per cent and Shuaa Capital rises 11.5 per cent. The latter has appointed a new chief financial officer. "Stocks are undervalued compared to other markets, but the confidence is not back yet," says Samer al-Jaouni, General Manager of Middle East Financial Brokerage Co. Dubai's benchmark climbs 3.7 per cent to 1,747 points, its biggest one-day gain since December 14 and highest close since December 12. DP World, which is listed on the later-closing Nasdaq Dubai, is up 6.2 per cent. It is majority-owned by Dubai World. Abu Dhabi's index rises 1.2 per cent to 2,868 points, its highest finish since November 25, the day Dubai World asked for a debt standstill. Aldar Properties adds 2.5 per cent. Abu Dhabi Commercial Bank, which is among Dubai World's major domestic creditors, rises 5.8 per cent.