Stocks in Dubai and Abu Dhabi have rallied sharply as events in Egypt overnight seemed to convince investors that the country's unrest is reaching an apex.
While Egyptian President Hosni Mubarak may have failed to calm protesters after saying he would step down at the next election, world markets told a different story.
The Dubai Financial Market General Index rose 1.57 per cent at the opening of trading to 1567.99, their biggest gain in a month, while the Abu Dhabi Securities Market General Index rallied 0.80 per cent to 2620.19.
However, Amjid Bakir, trading manager at Wafa Financial Services, said that good news from western stock markets was filtering through to the Gulf.
The Dubai Financial Market General Index rose 1.57 per cent at the opening of trading to 1567.99, their biggest gain in a month, while the Abu Dhabi Securities Market General Index rallied 0.80 per cent to 2620.19.
However, Amjid Bakir, trading manager at Wafa Financial Services, said that good news from western stock markets was filtering through to the Gulf.
"Look to the international market - Europe and the United States," he said. "This rebound is filling the gap."
Western markets had a strong session yesterday, with the S&P 500 Index rising 1.67 per cent to 1,307.59 and the FTSEurofirst 300 increasing 1.42 per cent to 1,159.80.
Overnight, Japan's Nikkei 225 rose 1.78 per cent to 10,457.36, while the Hang Seng Index was up 1.81 per cent at 23,908.96.
Banking stocks emerged as the leaders on the UAE's markets in early trading. National Bank of Abu Dhabi was one of the leading stocks on the capital's markets, gaining 4.3 per cent to Dh12 per share. The bank posted strong earnings after markets closed yesterday afternoon, also clarifying its exposure to Egypt.
Abu Dhabi Commercial Bank was also one of the morning's winners, rising 3.7 per cent to Dh2.23.
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