UAE bourses rise on Fed's plan to revive lending among banks

DUBAI -UAE stocks advanced yesterday, led by Emaar Properties and banks, following gains in the US and Asia on speculation that the US Federal Reserve would pour Dh734.3 billion ($200 billion) into the financial system to revive lending among banks.

By A Staff Reporter

Published: Thu 13 Mar 2008, 8:41 AM

Last updated: Sun 5 Apr 2015, 1:19 PM

The Dubai Financial Market (DFM) General Index rose some two per cent to close at 5,819.86 while the Abu Dhabi Securities Market (ADSM) Index climbed 0.7 per cent at 4,764.76 points.

The biggest publicly traded real-estate developer in the Middle East and Africa, Emaar climbed three per cent to Dh12.15 from Dh11.80 while Union Properties topped DFM with a jump of 6.4 per cent to Dh4.80 and Commercial Bank of Dubai rose 4.7 per cent to Dh10.10.

DFM posted shares value of almost Dh2 billion. It rose by as much as 2.2 per cent to 5,838.97 at 11:09am, its biggest gain since February 20.

"There is a lot of positive sentiment from the Fed's move yesterday," said Jalal Faruki, a senior associate at Al Mal Securities, in a Bloomberg report on Wednesday. "We saw and we are seeing some of that here."

The Fed said it plans to lend up to $200 billion in Treasuries to securities firms to help out the troubled credit markets, prompting the US Standard & Poor's 500 Index to climb 3.7 per cent on Tuesday, the Bloomberg report said.

It added that the Fed coordinated with central banks in Europe and Canada which plan to inject up to Dh165.2 ($45 billion) into their banking systems. Asian stocks also rose the most yesterday.

Emirates Telecommunications Corp, or Etisalat, advanced 0.8 per cent to Dh24.20 while Finance House 1.5 per cent to Dh10.25 and Emirates Driving Co topped ADSM with a jump of 7.7 per cent to Dh6.

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