DUBAI - The Dubai Financial Market (DFM) staged a recovery in late trading on Thursday amid growing signs that the markets were approaching a key support level.
- Mark T. Townsend
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Updated: Sun 5 Apr 2015, 2:25 PM
According to analysts the Dubai market may be finding support around the 3,100 point-level as investors look for buying opportunities. The benchmark DFM closed up 1.49 per cent at 3,256 points.
Real estate bellweather Emaar Properties recouped earlier losses closing 4.52 per cent up. However shares in DP World plunged 9.09 per cent to $0.39 on the Dubai International Financial Exchange.
In Abu Dhabi stocks remained under pressure with the Abu Dhabi Securities Exchange (ADX) closing down 2.03 per cent. National Bank of Abu Dhabi fell 5.58 per cent and Etisalat eased 1.57 per cent. Gulf based analysts are hoping that the easing in Libor rates in London will filter through to local UAE markets and will be reflected in a similar easing of Ebor rates. In London 3-month Libor rates have fallen 10 per cent this week. Eibor is the rate banks in the UAE charge each other for interbank transactions.
Rates have rocketed recently fuelling fears of a sustained liquidity crunch amongst UAE lenders prompting authorities to create a Dh120 billion stand-by facility. Earlier this week the UAE central bank injected Dh25 billion into the financial system. Elsewhere in the Gulf markets fell on continued global unease.
Kuwait: The benchmark KWSE slipped 2.99 percent to 10,481 points. National Bank of Kuwait and Kuwait Finance House ended 4.94 percent and 2.86 percent lower respectively.
Qatar: The benchmark QSI plunged 4.42 percent to 7,569 points, having lost more than 20 percent since the beginning of the year. Qatar Gas and Transport (Nakilat) plummeted 5.09 percent. Oman: The index declines 2.36 percent to 7,093 points. Oman Cable Industries Co ended 6.12 percent lower, making it the top loser on the Muscat benchmark MSI. Bank Muscat and National Bank of Oman lost 1.71 percent and 3.54 percent respectively.
Bahrain: The main BAX index BAX shed 0.8 percent at 2,290 points. Ahli United Bank fell 1.1 percent while Gulf Finance House declined 5.6 per cent.-
mark_townsend@khaleejtimes.com (With inputs from Reuters)
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