Dubai leads market rebound in region

Dubai: Shares in Dubai and other Gulf markets surged on Sunday, leading to a strong recovery in the region.

The share revival followed a US stock rally on Friday following the $700 billion US government bailout plan announced to rescue leading banks and finance companies holding potentially spurious mortgage assets.

After losing about Dh50 billion in market capitalisation last week, the Dubai Financial Market posted a gain of Dh14.15 billion and the Abu Dhabi market jumped Dh19.46 billion. The combined gain was Dh33.61 billion on Sunday.

Taking cues from global markets local investors came back into the market in large numbers on Sunday, sending the Dubai index soaring by 387 points and Abu Dhabi by 219 points.

"Bear markets are very sensitive to news and any news can make markets to turn or reverse sharply," said Shiv Prakash, equity investment analyst at Mac Sharaf Securities.

Real estate shares reported the biggest gains with Emaar hitting upper circuit breaker (the maximum permissible upper ceiling) at 15 per cent. While Emaar counter traded more than Dh726 million, the share closed 15 per cent up at Dh8.05. In the banking space, almost all Islamic banks closed fairly steady.

The Muscat Securities Market 30 Index rose 4.3 per cent, its largest gain since November 2000. Doha Securities Market Index surged 7.9 per cent, while the Bahrain All Share Index added 0.8 per cent.

Saudi Arabia's Tadawul All Share Index declined 0.6 per cent, ending two days of advances.

Do you think the momentum in the markets is sustainable? Would you consider purchasing shares at this point? Why?

I don't think that will sustain, since all the major economies in the world are slowing down or in recession, it will be hard to sustain any long term gain or profit.
Frank
Dubai,U.A.E
Posted: September 22, 2008, 09:52

True and yes markets can see some good gains and scan becoming strict on short selling, can see some good moves I will buy good stocks. And yes Mr.Shiv is right as you won't get opportunity to enter if not entered now as markets can rise fast. So I will buy now what I get.
Rajani
Dubai,UAE
Posted: September 22, 2008, 08:17

What we are currently seeing is short lived, and in the short term whom so ever takes the opportunity to invest at this point and has the ability to be patient, am sure he/she wont be disappointed down the road. As slowly people start realizing the severity of damage of Lehman. They will bounce back and right now your watching the opportunists in action!
Furqan
Shj,UAE
Posted: September 22, 2008, 07:54