Hope of emerging-market status for UAE lifts indexes

Indexes in the UAE rose yesterday as investors speculated that the adoption of a new settlement system might lead the influential MSCI index to classify the country as an emerging market.

The country's stock exchanges will adopt the delivery versus payment (DVP) system on April 28.

Under the DVP system, securities are delivered and payment received on the same day. It is one of the last changes the markets have had to implement to meet the requirements established by MSCI, which currently classifies the UAE as a frontier market.

Dubai Financial Market Company, the region's only publicly listed exchange, advanced 3 per cent to Dh1.35 a share. The Dubai Financial Market General Index rose 1.1 per cent to 1,590.48.

"Some people are building positions and betting on the MSCI inclusion into the summer, while others are buying because they feel more positive about the UAE economy and valuations of companies here," said Fadi al Said, a fund manager at ING Investment Management in Dubai.

The Abu Dhabi Securities Exchange General Index rose 0.5 per cent to 2,632.44, led by property stocks.

Aldar Properties rose 3 per cent to Dh1.55. RAK Properties advanced 2.5 per cent to 40 fils, while Sorouh Real Estate rose 2.2 per cent to Dh1.38.

Kuwait's benchmark was unchanged at 6,364.60. Bahrain's index lost 0.6 per cent to close at 1,409.35, Oman's gained 0.6 per cent to close at 6,372.97, Qatar's slipped 0.7 per cent to 8,771.80, and the Saudi Tadawul All-Share Index fell 0.3 per cent to 6,590.65.

halsayegh@thenational.ae