Abu Dhabi: Equity markets in the GCC and Europe showed some recovery on Monday as bargain-hunters started buying on the dips following the plunge seen on Friday and Sunday on the back of the Brexit.
In the UAE, the Dubai Financial Market (DFM) index rose nearly one per cent in early trade, with almost all stocks in the green. This comes after the index fell as much as 4.7 per cent on Sunday only a few minutes after trade began, and ended the day 3.2 per cent lower.
In the capital Abu Dhabi, the benchmark index was up 0.44 per cent around noon after falling 1.85 per cent on Sunday.
Similarly, Saudi Arabia’s Tadawul index was up 0.61 per cent roughly half an hour after trade began, while Qatar’s QE index was almost flat, moving 0.08 per cent up.
European equity indices were also moving within narrow ranges in early trade, with Germany’s DAX index down 0.1 per cent after opening a few points higher. France’s CAC 40 index fell 0.15 per cent after also jumping at opening time, while Italy’s benchmark index was flat.
Spain’s index, however, jumped 2.4 per cent after the country’s People’s Party of the Prime Minister won most seats in the parliamentary elections.
The higher movement in equity markets is in contradiction with the sterling’s performance as the currency fell to nearly 30-year lows on Monday, falling two per cent in early trade.
The pound’s movement extends its losses from Friday after Britain voted to leave the European Union – a move that sent the currency to 31-year lows and European equity indices down no less than six per cent, with Italy and Spain’s indices down over 11 per cent each.
