Amlak, Tamweel, Rebound After Falling to 52-Week Lows Last Week

By Arif Sharif

Sept. 21 (Bloomberg) -- Amlak Finance PJSC and Tamweel PJSC, the United Arab Emirates' two biggest mortgage lenders, jumped more than 10 percent in Dubai as investors hunted for bargains after the shares fell to annual lows last week.

Amlak jumped 9.8 percent to 3.6 dirhams at 11:11 a.m. Dubai time after rising as much as 14 percent earlier in the day. Tamweel rose 8.4 percent to 4.13 dirhams after gaining 11.3 percent. Amlak lost almost 14 percent in the past two weeks and Tamweel fell 34 percent, both hitting 52-week lows on Sept. 15.

Tamweel, the U.A.E.'s second-biggest mortgage provider by market value, said Sept. 9 its deputy chief executive officer had been held by Dubai government authorities in connection with an ongoing corruption investigation.

``This is an expected rebound after prices dropped to very attractive levels last week,'' said Nadine Wehbe, a senior analyst at Orion Brokers in Dubai. ``The investigations into Tamweel had an impact on the entire sector as well and the shares were affected badly, which it shouldn't have.''

Amlak trades at a price-earnings multiple of 9.7 times to its estimated 2008 earnings and Tamweel at an estimated PE of 5.4, according to Bloomberg data.

To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net