x Abu Dhabi, UAEFriday 21 July 2017

US and Asia inject positivity into UAE markets

Markets Update: Regional markets have received a boost this morning after positive news from the US and Asia pointed to further recovery in the global economy.

Regional markets have received a boost this morning after positive news from the US and Asia pointed to further recovery in the global economy.

The Dubai Financial Markets General Index was up 2.61 per cent to 1,745.62 in early trading. The Abu Dhabi Securities General Index rose 0.45 per cent to 2,635.67.

Tabreed, the cooling system operator, was performing best in early trading, up 14.20 per cent. Shares in the small cap company have been soaring in recent months, and are up 270 per cent since the start of the year.

Dubai Financial Market Company was up 12.5 per cent. The company disappointed with its fourth quarter financial results last month but has continued to do well with investors.

Local bourses have risen against a backdrop of positive indicators from China and the US.

Lending figures for China's four biggest banks show loans increased by about 20 billion yuan in January and February, compared to a year earlier. The Chinese government has said it will move to improve credit lines to small businesses and government-led affordable housing construction projects.

China's building boom keeps demand for oil and metals high, benefiting Gulf countries which export the commodities to the Asian giant.

Positive signs also came out of the US today, with economists forecasting American employers added more than 200,000 workers for a third month in February, pointing to greater optimism about the pace of that nation's recovery.

Markets in Qatar are closed today for a public holiday.