Markets Update: Local markets advance at the open, after European leaders agreed to expand a bailout fund to stem the region's debt crisis.
Dubai's market rallies on Euro deal
Dubai's index rallied today, taking cues from global markets, after European leaders agreed to expand a bailout fund to stem the region's debt crisis.
Drake & Scull International, Dubai's second-biggest builder, jumped 3 per cent to 78 fils a share. Emaar, the region's biggest developer, added 1.6 per cent to Dh2.52. Tamweel, an Islamic mortgage firm, advanced 2.6 per cent to 70 fils. The Dubai Financial Market gained as much as 0.9 per cent, the biggest increase since August 4, to 1366.82 points at the open. Oil prices gained as much as a dollar. Brent crude was up $1.00 to $109.91 a barrel, after touching a high of $110.12 earlier.
French President Nicolas Sarkozy said the euro region's bailout fund will be leveraged by four to five times and investors have agreed to a voluntary write down of 50 per cent of Greek debt.
Abu Dhabi's gauge, the Abu Dhabi Securities Exchange General Index added 0.4 per cent to 2465.65.
"The newsflow from Europe is not bad, we can see an improvement in the mood for the local markets," said Sebastien Henin, a portfolio manager at Abu Dhabi-based The National Investor.
Elsewhere in the region, Kuwait's index was flat at 5900.80. Bahrain's measure slipped 0.2 per cent to 1149.63. Oman's MSM 30 Index added 0.3 per cent to 5564.53. Qatar's QE Index advanced 0.4 per cent to 8505.80 points. The Saudi Tadawul was closed for the day.