Dubai sees biggest gain in 15 months, markets up
Dubai's index makes its largest gain in 15 months with the benchmark climbing 4.3 per cent to 1,513 points, trimming its 2011 losses to 7.2 percent.
March 13, 2011 3:08 by Reuters
Dubai’s index makes its largest gain in 15 months as investor fears that political unrest would spread to top oil exporter Saudi Arabia ease.
The benchmark climbs 4.3 per cent to 1,513 points, its biggest gain since Dec. 14, 2009, and trimming its 2011 losses to 7.2 per cent.
Emaar Properties and Arabtec climb 10.1 and 7.3 percent respectively, with this pair accounting for more than a third of all shares traded.
“There’s a relief rally as there is a lack of any other activity,” says Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
“If the market consolidates, it will be very positive, but if it gives it all back (this) will highlight there is a lot of risk in the market.”
Stocks had tumbled on fears unrest would gain hold in Saudi Arabia following deadly protests in Bahrain and Oman, but with demonstrations in the kingdom over the weekend proving to be largely a non-event, regional sentiment is more upbeat.
Abu Dhabi’s index rises 1.5 per cent to 2,666 points as volumes hit a five-week high.
Aldar Properties climbs 4.6 per cent and Dana Gas adds 3.3 per cent.
“Once things have settled down, we will see a lot more individual stocks gain, namely Emaar, Arabtec and Dana Gas,” adds Wakeman. “Investors will get more stock specific.”