The Markets: Local markets rose to new highs as worries over the global economy subsided and optimism over an MSCI upgrade buoyed sentiment.
Trading week off to a good start
UAE markets rose to new highs at the start of the trading week as global economic worries subsided and a decision on an MSCI upgrade loomed.
Abu Dhabi's market rose to the highest level in more than five months as the measure gained 0.6 percent to 2,777.01 points and the Dubai Financial Market General Index rose 0.4 per cent to 1,607.40 points, its highest point since May 11.
Speculation that the UAE was likely to be upgraded to "emerging market" status, from the riskier "frontier market" category by index compiler MSCI on Tuesday was helping fuel positive sentiment on local bourses, market commentators said.
"We started the month on a better note anyway, but I think the MSCI upgrade could be happening," said Mohammed Ali Yasin, chief investment officer at CAPM Investment.
"The position from three months ago has turned around, and since then we've seen some positive influx and higher than usual trades from international foreign investors," Mr Yasin said.
The Dubai measure has extended gains made last week, and has advanced 3.6 per cent in the 5 trading sessions alone.
Shares in the bourse operator, the DFM Company, gained the most at the open rising 2.3 per cent to Dh1.32. It was also the most actively traded stock in Dubai, with 11 million shares changing hands.
Dubai Islamic Bank and Emaar Properties, among the emirate's bellwether stocks, also rose 1 per cent to Dh2.12 and 0.3 per cent to Dh3.24 respectively.
A defiant German chancellor Angela Merkel also put to rest worries over a Greek default after she made it clear the entire euro zone would stand behind the country's debt-laden economy.
Billions of dollars were wiped off global markets last week as fears over how to resolve Greece's debt crisis came to a head.
Oil prices also fell to a four-month low of $93.01 a barrel on Friday amid concerns of a global economic slowdown.