Most Gulf markets rally, Dubai soars 5 %

Provided By:

Most Gulf markets rally, Dubai soars 5 %

Released on - Monday,02 November , 2009 -16:33 45

DUBAI - Most Gulf Arab markets rose on Monday, rebounding from sharp sell-offs in the previous session, with a rosier outlook for debt-laden Dubai driving the emirate's index to its largest one-day gain since February.

Dubai soared 5.2 percent, snapping a four-day run of losses that included a 5.5 percent drop on Sunday.

"We expect that Dubai's on-going bond issuance, which is reportedly gaining strong subscription abroad, will provide the underlying catalyst for UAE markets over the coming quarter," Ian Munro, head of research at MAC Capital Advisors, said in a note.

Funds will flow to Dubai government-related entities (GREs), helping them relieve finance obligations and easing local credit conditions, Munro said.

Last week, Dubai's government placed almost $2 billion in new five-year Islamic bond issues.

Heavyweight Emaar Properties climbed 7.9 percent, while construction firm Arabtec rallied 7.3 percent.

Abu Dhabi's benchmark ended 2 percent higher.

"Saudi Arabia was slightly better yesterday and U.S. futures are up so people are expecting something a little better today," said Ahmed Hamdy, senior relationship manager at Prime Emirates.

Saudi Arabia's index added 0.9 percent, having been the only market to rise in the Gulf Arab region on Sunday, after suffering its biggest single-session reverse for four months the day before.

In Kuwait, shares in Zain rallied 3.6 percent higher after the chairman of major shareholder Kharafi Group was quoted as saying the firm would not accept less than 2 dinars per share to sell a stake in the firm.

The benchmark added 0.4 percent, having closed lower for the previous three sessions.

HIGHLIGHTS OF MONDAY'S TRADING

QATAR

The index rose 2.1 percent to 7,032 points.

DUBAI

The benchmark added 5.2 percent to 2,185 points.

ABU DHABI

The main measure gained 2 percent to 2,978 points.

KUWAIT

The country's index rose 0.4 percent to 7,256 points.

OMAN

Muscat's benchmark advanced 0.9 percent lower to 6,330 points.