Plans to partly nationalise the world's banking systems pushed markets into a relief rally this morning, with most Asian and GCC exchanges gaining. In late trading, the Hong Kong and Singapore indexes had gained more than three per cent, while Sydney had put on five per cent. The exchanges opened strongly, dipped in midsession and then recovered well. In a sign that confidence was fragile, however, both the Jakarta and Taiwan markets are so far down more than two per cent. The British government has announced it is to partly nationalise three banks ? RBS, Lloyds TSB and HBOS, alongside an international package of measures. Fred Goodwin, the chief executive of RBS will step down. UAE markets opened strongly on hopes the latest co-ordinated international rescue, with the G7 and the International Monetary Fund ready to step in, would save the world from all-out recession. The Dubai Financial Market and Abu Dhabi Securities Exchange were both up 7 and 5.90 per cent respectively. Despite their rises, the continuing drop in the price of oil, which now stands at $80 a barrel, meant other Gulf bourses were more subdued. The Doha market bucked the trend by falling 7.18 per cent, while Bahrain posted a 0.83 per cent loss. The Saudi Tadawul and Kuwaiti markets both have added less than half a per cent today, while Muscat has grown by less than two per cent. afoxwell@thenational.ae
Markets show early recovery
Asian and GCC exchanges gain after last week's historic sell-off as governments intensify efforts to stabilise troubled financial systems.
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