Dubai shares show gains on US hopes
Dubai's shares rebounded yesterday, snapping a two-day losing streak, as US politicians began a fresh attempt to reach agreement on raising the US$14.3 trillion debt ceiling.
Bellwether Emaar Properties rose 2.1 per cent to Dh2.88 a share. Dubai Financial Market (DFM) Company, the only Gulf Arab stock market to sell shares to the public, rose 1.7 per cent to Dh1.16.
The DFM General Index advanced 0.7 per cent to 1,517.58. The index lost 0.3 per cent, or almost six points, on Wednesday and Thursday last week.
The Abu Dhabi Securities Exchange General Index was down 0.3 per cent to 2,619.70 on lacklustre volumes.
US politicians on Saturday reached a tentative framework that includes immediate spending cuts of $1tn and the creation of a special committee to recommend additional savings of up to $1.8tn later this year, Bloomberg News reported.
The Dubai bourse's performance was due to "anticipation of a better opening on Monday for international markets," said Anastasios Dalgiannakis, an institutional trading manager at Mubasher Financial Services in Dubai. "Once [US politicians] agree on something meaningful, we should see international markets recovering a bit and translate to our market," he said.
World stocks headed for their biggest weekly loss in almost a year on Friday as investors piled into safer assets. In the US, the Dow Jones Industrial Average fell 0.7 per cent to 12,143.20. In Europe, the FTSE 100 Index lost almost 1 per cent to close at 5,815.19.
Elsewhere in the region: Kuwait's measure was unchanged at 6030.60; Bahrain's was down 0.5 per cent to 1,291.66; Oman's fell 0.6 per cent to 5,808.03; Qatar's rose 0.3 per cent to 8,402.86; and the Saudi Tadawul All-Share Index was up 0.5 per cent to close at 6,392.13.
Published: August 1, 2011 04:00 AM