Banks talk of the day as European markets rally

Local markets failed to benefit from a European rally yesterday amid fresh speculation that policymakers are looking at new ways to protect banks.

On the Dubai Financial Market, Air Arabia, the region's biggest carrier, lost 0.8 per cent to 62 fils a share.

Union Properties, the developer that built Dubai MotorCity, declined 1.8 per cent to 32 fils.

Dubai Investments was down 0.1 per cent to 73 fils.

The Dubai Financial Market General Index lost 0.1 per cent to 1,385.08 points.

European markets made solid gains yesterday.

This followed reports suggesting that policymakers were working on a new plan to recapitalise banks amid a worsening debt crisis.

"The lack of interest has reached a point that there is no liquidity to create volatility anymore," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai.

"There are no long-term investors and no traders and that is why we are not seeing turnover or movement on bullish days."

In the capital, Aldar Properties closed 0.9 per cent lower to Dh1.10 a share and Dana Gas declined 0.9 per cent to Dh1.10.

Union National Bank lost 0.3 per cent to Dh2.97.

The Abu Dhabi Securities Exchange General Index declined 0.3 per cent to 2,488.43 points.

Elsewhere in the region: Kuwait's measure gained 0.2 per cent to 5,819.60; Bahrain's index lost 0.1 per cent to 1,165.63; Oman's bourse declined 0.2 per cent to 5,542.13; and Qatar's benchmark was little changed at 8,155.71.

The Saudi Tadawul All-Share Index was up 0.6 per cent to 6,002.09 points.

halsayegh@thenational.ae