The Dubai Financial Market rose on Tuesday buoyed by the US bailout of Citigroup and the reassurance that Dubai's debts are easily serviceable.
Hint of cheer puts shine on Gulf markets
The Dubai Financial Market rose today, buoyed by the US bailout of Citigroup and the reassurance that Dubai's debts are easily serviceable. After months of decline in property and banking stocks, the DFM index rose by 2.62 per cent today. Both Emaar and Deyaar were up 3.64 and 3.13 per cent, while property-linked Dubai Islamic Bank climbed 3.13 per cent. Vyas Jayabhanu, the head of Al Dhafra Financial Broker in Abu Dhabi, said however more positive news was needed for a sustained recovery to take hold.
"The market reacted sharply to Mohammed Ali Alabbar's comments right from the start of the session and this led to a strong rally initially," he said. "But as the day progressed it was evident that doubts in the minds of investors persisted. Investors want to wait a bit longer before they find the real base. The gains followed comments by Mohammed Ali Alabbar, chairman of Emaar and director-general of the Dubai Department of Economic Development, who revealed the emirate's debt was US$80 billion (Dh294bn), which he said was easily serviceable.
The biggest gainers included developer Arabtec, which rose by 14.97 per cent, a whisker away from its maximum allowed daily rise of 15 per cent. It closed at Dh3.38, still substantially down from its peak of more than Dh19 in July. The rise was boosted by its announcement that it is considering a one-for-one bonus share distribution, which would double its capital. firstname.lastname@example.org