Merkel and Sarkozy fail to inspire UAE bourses

Lukewarm trading on the GCC bourses as investors remained averse to risk despite the agreements by German Chancellor Angela Merkel and French President Nicolas Sarkozy to curb the pressure on weak EU economies.

The Dubai Financial Market General Index was down 0.1 per cent to 1463.65 points in thin trade. Abu Dhabi Securities Exchange General Index was little changed at 2585.02 points.

European markets opened up lower on Wednesday's session with declines. The Eurostoxx 50 dropped 1.1 per cent to 2311.63 points while the German DAX Index lost 1.6 per cent to 5951.55 points and the French CAC shed 0.8 per cent to 3231.22 points. In the UK, the FTSE 100 traded 1 per cent lower to 5314.69 points in the first hour of trading.

Local stocks showed declines. Aramex, the region's largest courier company, was down 0.5 per cent to Dh1.75 a share. Union Properties, a Dubai based developer, was down 3.4 per cent to 37 fils a share. EmiratesNBD, Dubai's biggest bank by assets, was down 1.9 per cent to Dh3.99 a share.

Elsewhere in the region, Kuwait's index was little changed at 5844.20 points. Bahrain's index was up 0.1 per cent to 1267.94 points. Oman's index was up 0.5 per cent to 5484.76 points. Qatar's benchmark was up 0.3 per cent to 8164.76 points. The Saudi Tadawul was down 1.3 per cent to 6053.72 points.