Dubai's bourse today reacted well to comments from the boss of Emaar Properties that the emirate's real estate sector is past the worst with the DFM's General Index closing on an up.
Emaar comments prove fillip to Dubai bourse
Dubai's main bourse rebounded from yesterday's lows after Ireland's €85 billion (Dh413.4bn) aid package agreement buoyed markets across the globe and news closer to home sparked optimism.
The Dubai Financial Market (DFM) General Index gained 0.9 per cent to 1,674.77 points.
The uptick came on the same day that Emaar chairman, Mohamed Alabbar said the emirate's property market had reached the bottom. "There's not much new supply coming in. The property market has bottomed out without a doubt," he said at the Arabian Business Forum in Dubai yesterday.
Property stocks were among the most traded shares as Emaar Properties rose 1.11 per cent to Dh3.64 and Arabtec increased 1.67 per cent to Dh1.83.
On international markets, Asian stocks were cheered on news as the Nikkei climbed 0.8 per cent to 10,125.99 and China's Hang Seng Index increased 1.2 per cent to 23,166.22 points.
The Dollar traded at a near two-month high against the euro as it reached $1.31.
Prices are up almost six per cent since the Fed announced a second round of quantitative easing to ease inflation and unemployment.
But analysts were wary on the increase.
"If you compare the UAE with emerging markets, we are still lagging far behind the BRICs. We still have no visibility in this market," said Sebestien Henin, fund manager at The National Investor.
"There is some profit taking in the banking sector. Abu Dhabi Commercial Bank (ADCB) enjoyed a strong rally last week [and will see a reverse today] and Union National Bank (UNB) has been withdrawn from MSCI Arabia so we expect some selling pressure," Mr Henin said.
ADCB fell 3 per cent to Dh2.22, UNB dropped 4.4 per cent to Dh3.04, National Bank of Abu Dhabi closed 0.8 per cent down to Dh12.3 and Abu Dhabi Islamic Bank lost 2.68 per cent to Dh2.9.
The Abu Dhabi Securities Exchange General Index slipped 0.6 per cent to 2,731.22 points as 12 stocks fell at the close.
Elsewhere indices closed higher; Qatar rose 0.6 per cent to 8,158.52; Oman rose 0.3 per cent to 6,602.95; Bahrain gained 0.8 per cent to 1,438.87 and Kuwait moved 0.6 per cent higher to 6,914.40.
The Saudi Tadawul All-Share Index rose 0.6 per cent to 6,346.52 points.
Local markets will be closed Thursday and next Sunday according to the Securities and Commodities Authority.