Stocks up on Dubai World talk
Most regional bourses posted gains yesterday, boosted by sound overseas markets, higher oil prices and recent reports indicating Dubai World's debt issues could be resolved soon. The Abu Dhabi Securities Exchange General Index rose 1 per cent to 2,759.15, reaching its highest level in more than a month. The gains came despite news that the Central Bank has ordered regional banks to limit their dividends.
Abu Dhabi Islamic Bank fell 2.45 per cent to Dh2.79 a share. RAKBank declined 8.4 per cent to Dh4.35 as investors reacted negatively to news that the bank planned to prematurely repurchase some of its outstanding debt. The Dubai Financial Market General Index increased 0.4 per cent to 1,628.44. After a tumultuous couple of weeks, the Dubai bourse appears to have regained some equilibrium thanks to indications that Dubai World is creeping closer to a deal with creditors.
"Investor behaviour has changed significantly," said Eyad Abdul Nabi, the chief operating officer at Al Ramz Securities in Abu Dhabi. "Investors are thinking there is going to be a [Dubai World] solution for all and as such there is no volatility. Trust has been regained in the market." Elsewhere in the region, Muscat's bourse advanced 0.4 per cent and Bahrain's measure climbed 0.1 per cent. The Saudi Tadawul All Share Index rose 0.6 per cent. Both the Kuwait and Qatar indexes retreated, 0.9 per cent and 0.08 per cent respectively.
Published: February 17, 2010 04:00 AM