MARKETS UPDATE: The UAE's markets rebound this morning, with investors saying that yesterday's panic leaves rich pickings on local stock exchanges - with video.
Emirates' bourses pick themselves up after Egypt woes
Markets have rebounded this morning after yesterday's Egypt-inspired woes, with speculation that the sharp fall on the UAE's bourses was overdone.
The Abu Dhabi Securities Market General Index rose 0.72 per cent to 2594.18 in early trading, while the Dubai Financial Market rose 0.84 per cent to 1547.89.
Hassan al Salah, head of institutional sales at AlRamz Securities, said that the markets were experiencing a bounce after "panic" selling yesterday:
"What you're seeing now is exactly that - you saw a lot of sinking stocks yesterday, you saw a lot of them falling in value, and today we're seeing a rebound."
However, worries about companies' exposure to Egypt are expected to roil world markets opening today for the first time since the uprising began. Asian stocks fell overnight, with Japan's Nikkei 225 index falling 1.03 per cent to 10,254, and the Hang Seng index sliding 1.12 per cent to 23,353.
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'After a weekend of deepening unrest in Egypt, the implications of the prevailing uncertainty have begun to broaden beyond Egypt's borders to many other regional bourses and even global commodity and equity markets. Ahead of tomorrow's open, we expect markets to remain unsettled, as the weekend's events have generated more questions than answers," said Ann Wyman, head of emerging markets research at Nomura.
Yesterday, bourses in the Gulf plunged on fears of contagion from widespread unrest in Egypt, with the ADX falling 3.68 per cent to 2561.06 and the DFM down 4.32 per cent to 1543.02.