Stocks rally as fears ease

Stocks in Dubai and Abu Dhabi rallied sharply yesterday as market fears over the unrest in Egypt began to ease.

The Dubai Financial Market General Index rose 3.31 per cent to 1,594.87, the biggest gain in almost a year, while the Abu Dhabi Securities Market General Index gained 0.96 per cent to 2,624.31.

Traders said although Gulf markets had been punished as protests erupted in Egypt, they were now experiencing a substantial rebound.

Amjad Bakir, the trading manager at Wafa Financial Services, said positive news from western stock markets was filtering through to local markets, which have lagged other bourses in recent months.

"Look to the international market - Europe and the US," Mr Bakir said. "This rebound is filling the gap."

National Bank of Abu Dhabi was one of the leading stocks on the capital's market, gaining 4.3 per cent to Dh12 a share. The bank posted strong earnings after markets closed on Tuesday and clarified its exposure to Egypt.

Abu Dhabi Commercial Bank was also one of the day's winners, and closed 2.8 per cent higher at Dh2.21, while Emaar, the Dubai property developer that is working on a number of projects in Egypt, rose 5.81 per cent to Dh3.28 a share.

Elsewhere in the region: Oman added 0.6 per cent to 6,850.35; Bahrain lost 0.4 per cent to 1,453.02; Kuwait gained 0.2 per cent to 6,819.30; Qatar nudged down 0.02 per cent to 8,738.70; and the Saudi Tadawul All-Share Index rose 2.2 per cent to 6,513.28.

ghunter@thenational.ae

fhalime@thenational.ae