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DP World gains as firm is dual-listed at LSE

The FTSE NASDAQ Dubai UAE 20 Index closed 0.86% higher today at 1740.96 points. Global maritime port operator DP World climbed by 0.89% to $13.57. June 1st marked the first trading day of DP World's dual listing at the London Stock Exchange (LSE). Credit Suisse analyst Vincent Résillot, EMEA Equity Research Analyst at Credit Suisse in London told that his bank "regards DP World's dual listing at the LSE rather as a non-event in relation to its immediate share price impact, as Dubai World holds 80.4% in DP World and shares with a majority shareholder are not considered to become part of the FTSE Index. We expect, however, some inflows from emerging market funds, hedge funds and infrastructure funds, as the access to the LSE is easier and cheaper than at the Nasdaq Dubai. It will be certainly also easier for retail investors in Europe to buy DP World from June 1st on, also because trading hours are longer at the LSE." Mr. Résillot added: "DP World de-consolidated its business in Australia recently as it sold 75% for $1.5bn and kept 25% and the operational control. We rate DP World with 'outperform' and have set a target price at $16.3 as we saw steady growth during the last years quarters and we expect DP World to grow volumes by 10 -11% in 2011, but also the firm is geographically well diversified."