ADNOC Distribution rises from IPO price

Reuters

Abu Dhabi was supported by a strong new listing and Qatar surged after the release of the government’s 2018 budget.
The Dubai index dropped 1.4 percent as Emaar Properties sank 6.2 percent to its lowest close since June, in its heaviest trade since June. Emaar said it would pay a special dividend of four billion dirhams ($1.1 billion) related to its listing of Emaar Development—three billion dirhams next month and one billion after its annual general assembly in April.
Neighbouring Abu Dhabi edged up 0.1 percent with sentiment supported by a firm debut by the fuel distribution unit of Abu Dhabi National Oil Co after the market’s first initial public offer in six years.
ADNOC Distribution opened at 2.90 dirhams against its IPO price of 2.50, and closed at 2.65.
In Saudi Arabia, the index fell 0.4 percent as Saudi Electricity plunged 9.9 percent in its heaviest trade since June 2016.
The stock had climbed 3.5 percent on Tuesday in anticipation of the government announcing hikes in electricity tariffs, and after the close, the regulator revealed higher tariffs for residential and commercial users from January 1.
But the company said it would pay the government a fee equivalent to the rise in tariffs, so there should be no positive impact on its profits. The most heavily traded stock, real estate firm Dar Al Arkan, jumped 9.9 percent after falling for two days.
Qatar’s index gained 2.2 percent to its highest level since mid-October in the heaviest volume since June. It has been rebounding for four straight days from near six-year lows where it had languished for a month, depressed in part by the boycott of Qatar by four other Arab states.
The government released a 2018 state budget plan that includes a 2.4 percent rise in spending. It said it expected to award 29 billion riyals ($8.0 billion) of contracts to support growth in the private sector next year, part of a drive to diversify and strengthen the economy in the face of the boycott.