Business | Investment
Gulf investors lukewarm to US election results
Stock markets across the region moved slightly higher on Wednesday, with investors displaying a lukewarm welcome to the news of Barack Obama being elected the next US president and preferring to wait and watch.
- By Gaurav Ghose, Financial Features Editor
- Published: 21:24 November 5, 2008
Dubai: Stock markets across the region moved slightly higher on Wednesday, with investors displaying a lukewarm welcome to the news of Barack Obama being elected the next US president and preferring to wait and watch.
In the UAE the Dubai Financial Market General Index barely moved, gaining 0.06 per cent to close at 2,917.29. The Abu Dhabi Securities Exchange Index performed better, adding 1.51 per cent to end at 3,435.61.
Elsewhere in the region, Saudi Arabia's Tadawul All Share Index rose 0.64 per cent to 6,079.66. Kuwait SE Price Index climbed 0.72 per cent. However, Oman's Muscat Securities Market 30 Index surged 5.89 per cent.
"There were mixed reactions to Barrack Obama's win," said Vyas Jayabhanu, head of Abu Dhabi-based Al Dhafra Brokerage. "Investors were saying 'The Golden Horse has been elected but how he runs is still a big question.' The trouble was compounded by the fact that foreign institutional investors were not present."
Investors in the region seemed to have priced in Obama's victory and hence discounted the news. European shares in midday traded lower ahead of a soft opening on Wall Street as investors booked some profits after Obama's victory.
"Investors here were not showing any interest in the market and it is only speculators who are indulging in penny trading," Jayabhanu added. "Investors seemed worried about holding their positions till the next session. They have started believing in booking small profits."
On DFM, Emaar Properties lost 0.56 per cent to close at Dh5.30, DFM Company declined 1.76 per cent to Dh2.23 and Dubai Islamic Bank shed 1.22 per cent to end at Dh4.05. Gainers included Takaful Emarat and Takaful House, up 1.45 per cent and 7.41 per cent respectively, Air Arabia, gaining 0.83 per cent.
On ADX, Aldar Properties was in demand, closing higher at Dh5.67. Sorouh Real Estate was up by 3.01 per cent at Dh4.11.
First Gulf Bank, which got an approval to buy back 10 per cent of its shares, closed higher at Dh13, a rise of 4.84 per cent.
National Bank of Abu Dhabi and Sharjah Islamic Bank also gained, advancing 6.30 per cent and 8.37 per cent.
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