Markets unmoved by Dubai news

After rising sharply on the initial news of a Dubai World debt agreement, UAE stocks ended trading only modestly higher yesterday as investors discounted the overall significance of the announcement. "There are no real surprises here. It was expected once we started hearing some updates on the final structure of the deal," said Rami Sidani, the head of MENA investments at Schroder Investment Management in Dubai.

The Dubai Financial Market General Index rose 0.5 per cent to 1,695.03. Financial stocks rose the most, with Shuaa Capital up 2.2 per cent to Dh1.38. Emirates NBD rose by 0.6 per cent to Dh3.76, and Dubai Islamic Bank finished up 0.4 per cent at Dh2.23. "The most important point here is the casting away of uncertainty at this stage," Mr Sidani said. "We're comfortable that Dubai World is closer to reaching an agreement with their creditors, and now we can start quantifying potential losses. Any further visibility is positive."

The Abu Dhabi Securities Exchange General Index moved up 0.1 per cent to 2,780.19. First Gulf Bank moved up 1.12 per cent to Dh18 a share, while National Bank of Abu Dhabi moved up 1.73 per cent to Dh11.75. Elsewhere in the region, Muscat's gauge lost 0.4 per cent to 6,484.12 and Bahrain's main measure fell 1.1 per cent to 1,498.66. Kuwait's index fell 0.1 per cent to 7,063 and Qatar's fell 0.04 per cent to 7,082.51. The Saudi Tadawul All-Share Index was closed for the day.

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