Dubai shares soar 10.5pc
UAE shares rebounded yesterday following the US Fed interest rates cut, with the Dubai measure rallying 544.63 points to its biggest one-day gain for years of 10.5 per cent at 5,755.21 and Abu Dhabi's benchmark jumping 272.61 points or 6.3 per cent to close at 4,575.20.
Analysts describe the Fed's move, which was followed by Gulf central banks, as the driving force in bringing investors back into equities. The US reduced the benchmark rate to 3.5 per cent on Tuesday, the first emergency reduction since 2001, to ward off a recession.
"The sell-off was overdone regionally because economies here are robust with very strong growth rates," said Dubai-based Kamran Butt, head of Middle East equity research at Credit Suisse Group, in a Bloomberg report.
The Dubai Financial Market (DFM) Index, whose 1.34 billion shares posted yesterday amounted to Dh6.3 billion, had dropped 17 per cent in the previous five days. It recorded its one of the biggest single-day declines in four years of 6.2 per cent at 5,210.58 on Tuesday.
The UAE reduced the repo rate by three-quarters of a point while Saudi Arabia, the world's biggest oil producer, cut the reverse repurchase rate by half a percentage point and Kuwait trimmed its benchmark lending cost to lessen the appeal of its dinar.
Analysts also say that the UAE and Saudi Arabia do not face serious market risks due to the US economic slowdown, unless the losses spill over to Asia or there is a drop in oil prices. Asian stocks rebounded yesterday from the biggest two-day drop in 18 years while European stocks gained on Tuesday for the first time in six days.
Saudi Arabia's Tadawul All Share Index gained 6.3 per cent to close at 9,922.20 points in Riyadh following a slide of 9.7 per cent on Tuesday, its steepest one-day decline on record.
Emaar Properties, the largest real-estate developer in the Middle East and Africa, rose for the first time in six days with a jump of 11.1 per cent from Dh12.60 to Dh13.55 following a loss of 20 per cent in the previous five days. The company's chairman, Mohamed Alabbar, told the local TV station Al Arabiya that Gulf stock markets would advance this year vis-a-vis the rapid economic growth in the region. Shares in Emaar posted a value of Dh1.87 billion yesterday.
Amlak Finance, the Middle East's largest publicly listed Islamic finance company, and Al Mazaya Holding Co topped DFM with a surge of 15 per cent each from Dh4.36 to Dh4.77 and from Dh7.70 to Dh8.85 respectively.
There were only two losers, namely Grand Real Estate Projects Co with a slump of six per cent to Dh4.60 and Arab Insurance Group, which declined 0.3 per cent to Dh3.23.
Aldar Properties, Abu Dhabi's largest property developer, surged 9.2 per cent to close at Dh10.40 while the Abu Dhabi Aviation Co topped the Abu Dhabi Securities Market (ADSM) Index with a jump of 9.6 per cent to Dh3.55. National Bank of Fujairah was the biggest loser with a fall of 10 per cent to Dh4.76.
The benchmark in Qatar climbed 4.2 per cent to close at 9,533.27 points, after it tumbled to a three-week low of 7.8 per cent on Tuesday. Oman's main index also rose yesterday, as investors brushed off the previous day's losses across global equity markets.
Egypt's benchmark stock index surged over five per cent in early trading following a five-day loss. Source
Analysts describe the Fed's move, which was followed by Gulf central banks, as the driving force in bringing investors back into equities. The US reduced the benchmark rate to 3.5 per cent on Tuesday, the first emergency reduction since 2001, to ward off a recession.
"The sell-off was overdone regionally because economies here are robust with very strong growth rates," said Dubai-based Kamran Butt, head of Middle East equity research at Credit Suisse Group, in a Bloomberg report.
The Dubai Financial Market (DFM) Index, whose 1.34 billion shares posted yesterday amounted to Dh6.3 billion, had dropped 17 per cent in the previous five days. It recorded its one of the biggest single-day declines in four years of 6.2 per cent at 5,210.58 on Tuesday.
The UAE reduced the repo rate by three-quarters of a point while Saudi Arabia, the world's biggest oil producer, cut the reverse repurchase rate by half a percentage point and Kuwait trimmed its benchmark lending cost to lessen the appeal of its dinar.
Analysts also say that the UAE and Saudi Arabia do not face serious market risks due to the US economic slowdown, unless the losses spill over to Asia or there is a drop in oil prices. Asian stocks rebounded yesterday from the biggest two-day drop in 18 years while European stocks gained on Tuesday for the first time in six days.
Saudi Arabia's Tadawul All Share Index gained 6.3 per cent to close at 9,922.20 points in Riyadh following a slide of 9.7 per cent on Tuesday, its steepest one-day decline on record.
Emaar Properties, the largest real-estate developer in the Middle East and Africa, rose for the first time in six days with a jump of 11.1 per cent from Dh12.60 to Dh13.55 following a loss of 20 per cent in the previous five days. The company's chairman, Mohamed Alabbar, told the local TV station Al Arabiya that Gulf stock markets would advance this year vis-a-vis the rapid economic growth in the region. Shares in Emaar posted a value of Dh1.87 billion yesterday.
Amlak Finance, the Middle East's largest publicly listed Islamic finance company, and Al Mazaya Holding Co topped DFM with a surge of 15 per cent each from Dh4.36 to Dh4.77 and from Dh7.70 to Dh8.85 respectively.
There were only two losers, namely Grand Real Estate Projects Co with a slump of six per cent to Dh4.60 and Arab Insurance Group, which declined 0.3 per cent to Dh3.23.
Aldar Properties, Abu Dhabi's largest property developer, surged 9.2 per cent to close at Dh10.40 while the Abu Dhabi Aviation Co topped the Abu Dhabi Securities Market (ADSM) Index with a jump of 9.6 per cent to Dh3.55. National Bank of Fujairah was the biggest loser with a fall of 10 per cent to Dh4.76.
The benchmark in Qatar climbed 4.2 per cent to close at 9,533.27 points, after it tumbled to a three-week low of 7.8 per cent on Tuesday. Oman's main index also rose yesterday, as investors brushed off the previous day's losses across global equity markets.
Egypt's benchmark stock index surged over five per cent in early trading following a five-day loss. Source
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