Markets Update: Dubai's stock market head for its highest gains since March after a deal is struck to resolve the eurozone debt crisis.
Trading soars on Dubai's bourse as optimism rises
Stocks on the Dubai Financial Market soared 2.6 per cent in early trading to 1,416.75, while the Abu Dhabi Securities Exchange General Index rose 1.5 per cent to 2,508.72.
Local bourses have been sapped by sluggish trading activity since the start of the summer amid a darkening outlook for the world economy, with the eurozone debt crisis convincing many traders to stay on the sidelines until market conditions improve.
But volumes have surged today as stocks in property companies, including Emaar Properties, Arabtec Holding and Drake & Scull International led Dubai's market higher.
Dubai Islamic Bank's shares rose 2.5 per cent to Dh2.01 per share after reporting a 12.8 per cent rise in quarterly profits to Dh305.1m.
In Abu Dhabi, banks including National Bank of Abu Dhabi, First Gulf Bank and Abu Dhabi Commercial Bank were among the biggest movers after a string of higher than expected earnings releases.
Markets elsewhere in the Gulf made modest gains, with Qatar's QE Index rising 0.7 per cent to 8,598.51.
The Saudi Tadawul All Share Index rose 1.4 per cent to 6,235.64 yesterday, following a dismal trading session on New York on Friday.