Abu Dhabi – Mubasher: Eshraq Properties’ share, listed on the Abu Dhabi Securities Exchange (ADX), recorded the highest volume of trades at the closing of Monday’s session, after the announcement by the Securities and Commodities Authority (SCA) that it did not approve Eshraq’s request to repurchase 10% of its shares.

The stock surged by as much as 5.26% to AED 0.80 during the session, following the four-session decline. Eshraq’s share ended Monday in the green at AED 0.77, an increase by 1.32%. The stock accounted for nearly a third of the ADX’s trades as 172.27 million shares were traded, representing 39% of the day’s liquidity. The shares were traded through 1232 transactions.

SCA had disapproved Eshraq’s request to purchase 10% of its stocks as such a request was not in line with the market’s rules and regulations.

The Abu Dhabi-listed real estate firm had recently increased its capital as it had no cash surplus to finance its projects; this opposes the Company’s request to buy back some of its stocks owing to having a cash surplus, SCA revealed in an ADX statement, adding that its decision is in line with Article no. 168, item no. 3, of the Federal Law no. 8 of 1984, and amendments thereto, concerning commercial companies.

SCA had recently approved a stock listing to increase Eshraq’s capital in accordance with market regulations. The capital increase, which amounted to AED 600 million, saw Eshraq raise its capital from AED 1.725 billion to AED 2.325 billion. AED 600 million were divided on 600 million shares at par value AED 1 per share.


Photo Credit: Arabianeye-Reuters