Market wrap UAE markets rallied for the third consecutive day with international buyers, encouraged by promising Dubai World negotiations, picking up stocks on the Dubai Financial Market (DFM).
Dubai World talks spark rally
UAE markets rallied for the third consecutive day with international buyers, encouraged by promising Dubai World negotiations, picking up stocks on the Dubai Financial Market (DFM). "Because they sit on the negotiation table, they get to see what could be proposed or coming," said Mohammed Ali Yassin, the managing director of Shuaa Securities. "Over the past three days, international investors have been net buyers in our markets. The markets - [Abu Dhabi Securities Exchange] ADX and DFM - had a total of US$1.1 billion in trading volume. It's amazing."
The ADX General Index closed 0.7 per cent higher yesterday at 2,795.03. Aldar Properties rose 7.8 per cent to Dh3.83 a share. Etisalat, meanwhile, closed 0.4 per cent higher, while Waha Capital, an investment and leasing company, closed 1 per cent lower at Dh0.94. The DFM General Index closed at 1,663.02, an increase of 0.8 per cent. The exchange's shares finished the day 3.3 per cent higher at Dh1.55. Emaar Properties rose 1.8 per cent to Dh3.40 per share, partly spurred on by yesterday's news that the developer's plans for a major development project in Indonesia were back on track. The NASDAQ Dubai General Index closed 1.8 per cent higher at 1,755.71.
Mr Yassin said he believed the rally was prompted by a stronger belief in the market that Dubai World's restructuring would occur without a haircut. Elsewhere in the region, the Muscat exchange closed lower at 0.5 per cent and Bahrain's main measure remained unchanged. Qatar's bourse closed flat at 6,854.96. Kuwait's stock exchange closed 0.7 per cent higher, while the Saudi Tadawul All Share Index closed 0.3 per cent lower.