Published: 9th September 2013
Rally in DPM after shares surged 11.29 per cent on Thursday as the stock exchange's mother company, Borse Dubai, proved it would not default on a loan due for refinancing this month.
Investors often uses Borse Dubai as an indicator for trading stocks, although the stock exchange's profits are not linked to the parent, but also from general trading in stocks and shares. The Borse refinancing will give confidence to investors that Dubai will sustain through the financial crisis, but it has no direct effect on DFM. Along with Dubai's main index rise of 3.1 per cent, Emaar Properties also advances 4.25 per cent.
Borse Dubai do now have the ability to refinance a full $2.5 billion loan, something that boosts investors confidence.