Markets Update: Dubai's stocks look to have officially entered a bull market, but investors are retreating today.
Dubai stocks take a bullish view
Investors in Dubai stocks are in retreat this morning, after the emirate's stock exchange entered "bull market" territory yesterday.
Meanwhile Abu Dhabi's market made a tentative increase in early trading as oil prices remained high, with Brent crude futures reaching their highest level since May.
The Dubai Financial Market General Index fell 0.3 per cent to 1,569.17, having risen 3.6 per cent yesterday to the highest level since the UAE missed out on MSCI Emerging Market status in June last year.
With the index up more than 20 per cent since lows reached on January 16, the DFM is now defined as having entered a "bull market"
But Dubai International Capital led the dip on the emirate's market this morning, falling 1.2 per cent after two hedge funds threw a £60 million (Dh349.5m) lifeline to Travelodge, the UK budget hotel chain it owns.
The Abu Dhabi Securities Exchange General Index gained 0.2 per cent to 2,494.97.
Cement makers, including Sharjah Cement and Industrial Development Company and Ras Al Khaimah Cement Company, leapt for the second consecutive day on Abu Dhabi's bourse. The rise follows the announcement of an export ban on cement in Saudi Arabia and warnings of spiralling building costs from the kingdom's makers of building materials.
Oilprices rose 86 cents to $122.21 per barrel in early trading as sabre-rattling between the US and Iran intensified.
Asian markets were mixed on optimism over the eurozone sovereign debt crisis as European finance ministers meet in Brussels today and China cut reserve requirements for banks.
The Nikkei 225 gained 1 per cent to 9,485.09 while the Hang Seng Index was flat at 21,492.29. S&P 500 futures rose, pointing to a higher open on Wall Street later today.