US compromise lifts Dubai

Local equities listed in the UAE get a boost on optimism that US congressional leaders can strike a deal to raise the country's debt ceiling.
Agreement on raising the US debt ceiling boosted shares.
Agreement on raising the US debt ceiling boosted shares.

Dubai shares rallied to their highest in almost two weeks yesterday after Barack Obama, the US president, said leaders of both parties in the US House and Senate had reached a tentative agreement to raise the country's debt ceiling before a possible default deadline due today.

Emaar Properties, the region's biggest developer, was up 2.7 per cent to Dh2.96. Tamweel, the Dubai Islamic mortgage company, jumped 3.2 per cent to 89 fils a share. Aramex, the region's biggest courier company, added 2.2 per cent to Dh1.83.

The Dubai Financial Market General Index added 0.5 per cent to 1,526.34 points, its highest level since July 20.

"The comments that came out were very positive," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai. "Hopefully it will pass and markets will continue to perform. If passed, the US would avoid a technical default that would hurt global recovery."

Dubai's default risk, or credit default swaps, retreated 16 basis points, or 0.16 percentage point, to 317, the lowest level since June 7, according to CMA. The data provider is owned by CME Group and compiles prices quoted by dealers in the privately negotiated market.

The Abu Dhabi Securities Exchange General Index rose 0.6 per cent to 2,637.88 points. Aldar Properties, Abu Dhabi's biggest developer, was up 2.4 per cent to Dh1.28. Sorouh Real Estate, Abu Dhabi's second-biggest developer, rose 1.6 per cent to Dh1.26 a share.

Elsewhere in the region: Kuwait's index rose 0.1 per cent to 6,037.20 points; Bahrain's index lost 0.1 per cent to 1,290.06; Oman's benchmark gained 0.4 per cent to 5,832.38; Qatar's benchmark gained 0.1 per cent to 8,412.44. The Saudi Tadawul All-Share Index added 1.25 per cent to 6,471.82.

Published: August 2, 2011 04:00 AM


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