Equities Record Modest Gains on Rate Cut Hopes


23/03/2009 00:00 AST  Khaleej Times

UAE shares recorded modest gains on Sunday, amid hope that the UAE Central Bank will reduce interest rates to bolster economic activity ?in the country.

The First Gulf Bank, also known as FGB, surged the most in more than two months while RAK Bank topped gainers’ list at the ADX with 10 per cent rise in its price.

The Dubai Financial Market General Index closed at 1,541.52 points, up by 0.57 per cent, while the Abu Dhabi Securities Market index finished at 2,411.76 points, for a marginal gain ?of 0.68 per cent.

The UAE Central Bank governor Sultan bin Nasser Al Suwaidi recently announced that the central bank plans to bring down interest rates but said that rates in the UAE won’t be as low as in the US.

“Retail investors hope that comments from the Central Bank Governor about a plan to reduce interest rates and keep them low, will spark a return of cash to stocks as investors look for higher return on capital,” said Matthew Wakeman, managing director of cash-and-equity-linked trading ?at EFG-Hermes. “Much improved market sentiment supported this view but my concern is that reduced bank deposits won’t help to spur lending, especially when banks’ capital adequacy requirements are being tightened,” feared Wakeman.

The availability of credit is often cited as a key requirement for recovery and is especially important to re-ignite real estate demand. The momentum of the Dubai market, coupled with rising oil prices and talk of rate cuts should keep it on track for a re-test of recent resistance levels, the first of which is 1,570 points and then 1,660.

“I still think we will need fresh foreign inflows or significant domestic news flow to reach 1,660 and beyond,” Wakeman said. Abu Dhabi’s FGB closed over 8 per cent higher albeit on low volume. It was announced after the close that it has paid off a $750 million ?syndicated loan in full.

News last week that liquidation is not an option for Amlak and Tamweel cheered investors in Emaar and Dubai Islamic Bank. Emaar owns 45 per cent of Amlak, and DIB owns 20 per cent of Tamweel. At the Dubai bourse investment sector topped as it gained 1.55 per cent to close at 2,120.49 points followed by real estate sector, which closed at 2,152.68 points, up by 1.34 per cent.

At the Abu Dhabi stock market, construction sector led with 4.44 per cent jump and closed at 3,623.61 points while Healthcare sector lost 3 per cent to close at 1,445.66. ?

Market News
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | News Archive

JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC
Most Viewed Companies
Ticker Price Volume
EEC 43.49 18,255,002
EMAAR 6.78 61,972,493
SABIC 83.5 3,267,171
RIBL 17.23 9,299,116
STC 67.25 1,154,613
SECO 15.81 6,324,924
SPIMACO 31.08 3,701,460
Recent News

UAE stocks: A roller-coaster ride for investors
After a very volatile week the Dubai Financial Market General Index (DFMGI) ended down 168.25 or 4.68 per cent to close at 3,426.7. That’s after dropping as much as 16.8 per cent before finding some

Saudi tops GCC in polymer production
Saudi Arabia has emerged as the biggest producer of polymers in the GCC with a 74 per cent share of the region's total capacity amounting to 17.6 million tonne, said a report.

There was an

The Dubai Economic Council signs an MOU with The Boston Consulting
The Dubai Economic Council (DEC) signed a memorandum of understanding (MOU) with the Boston Consulting Group (BCG) as an adviser on business strategy.

The MOU serves to provide support for s

Shurooq promotes Sharjah’s investment opportunities in India
The Sharjah Investment and Development Authority (Shurooq) last week concluded its participation in the Trade Mission to India, which took place from December 15-18. Shurooq’s involvement has part of

GCC braces for $350bn loss on oil plunge
Gulf countries could lose at least half their oil revenues or around $350 billion a year as crude prices plunge, according to senior analysts.

The GCC states, which pump about 17.5 millio

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Which of the following do you think is the best long-term investment?