UAE stocks inch higher, tracking the performance of global markets over the weekend, amid hopes that US policymakers will introduce stimulus measures to help boost the US's economy.
Property stocks up as UAE markets open
UAE property stocks rose at the open on Sunday, boosted by heightened euphoria as global markets made decent strides over the weekend, amid speculation that the US Federal Reserve may introduce stimulus measures to strengthen the world's largest economy.
Aldar Properties, the developer behind Yas Island, advanced 1.6 per cent to Dh1.24 on the Abu Dhabi Securities Exchange. Sorouh Real Estate, the developer behind Reem Island's Sun & Sky Towers, surged 3.5 per cent to Dh1.16. The Abu Dhabi Securities Exchange General Index was up 0.2 per cent to 2,567.79 points.
Investors this weekend were betting that US policymakers may act on weak payroll data for the month of August to help ease the country's economy at a meeting to be held on Wednesday and Thursday.
The Standard & Poor's 500 Index gained 0.4 per cent to 1,437.92 points. Gold rallied two per cent to US$1,740.50. Crude oil traded in New York advanced 0.9 per cent to $96.42. The Saudi Tadawul All-Share Index added 0.7 per cent to 7,105.04 on Saturday.
"If there is more stimulus there will be more liquidity in market and investors will seek high risk investments," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai.
Emaar Properties, the developer behind the world's tallest skyscraper, gained 1.2 per cent Dh3.38 in Dubai. Arabtec Holding, the region's biggest contractor, added 0.9 per cent to 87 fils a share. The Dubai Financial Market General Index rose 0.7 per cent to 1,566.91 points.
Elsewhere in the region, Kuwait's measure added 0.1 per cent to 5,918.94 points. Bahrain's index was little changed, up 0.08 per cent, to 1073.37 points. Oman's MSM 30 Index added 0.3 per cent to 5,578.92 points. Qatar's QE Index added 0.2 per cent to 8,467.20 points.