Abu Dhabi shares rose 4 per cent in early trading today while Dubai shares opened lower but quickly stabilized.
Abu Dhabi shares open higher
Abu Dhabi shares rose 4 per cent in early trading today in a volatile session for local markets. Dubai shares opened lower but quickly stabilized after heavy sell-offs last week. The Dubai Financial General Index, the emirates benchmark stock index, advanced 0.9 per cent at 10.30am. Shares in the neighbouring stock market of Abu Dhabi traded 4 per cent higher after opening on a positive note right from the start. Shares on Nasdaq Dubai fell 6.8 per cent. A request by Dubai World to its ask creditors for a debt standstill 10 days ago reverberated through global stock markets and led to a sell-off on local and international markets "The session is very volatile, There is some very aggressive buying but I cannot explain where it is coming from," said Ali Khan, the managing director and head of brokerage at Arqaam Capital. Banks and property developers looked most vulnerable to buying pressures. Initial declines were led by developer Emaar Properties, construction company Arabtec and Shuaa Capital, the local investment bank. Banking sector woes were further aggravated after the National Bank of Oman, a large Gulf lender, said it owed 8.7 million rials to Dubai World, the conglomerate with US$59 billion in liabilities. Its shares fell 9.4 per cent in its biggest intra-day drop since April 28. However, some experts are already upbeat about buying opportunities. EFG-Hermes, the Egyptian investment bank has pointed investors to buying opportunities outside of the banking and property sectors after cutting valuations for many UAE-based companies. "Outside of the real estate and banking sectors, we believe investors can find some attractive buying opportunities. That said, for long-term investors some real estate names might be worth considering sooner than expected, especially if they continue to fall hard," the bank said in a report.