Investors in UAE recover lost grounds

Dubai: UAE markets witnessed a relief rally on Thursday to end the week in which shares swung between gains and losses.

"The investors managed to recover some of the lost grounds from yesterday but I believe the trend of the market is still very bearish," said Vyas Jayabhanu, head of Al Dhafra Brokerage.

"If there is going to be some sort of a bounce it will only be after the Eid holidays." The Dubai Financial Market closed positively with the DFM General Index advancing 1.86 per cent to 3962.43.

Abu Dhabi Securities Exchange Index also gained, up 0.67 per cent to 3836.64. Nervousness about the US situation persists as the global credit crunch weighs down on market sentiments.

Here in the UAE, the tight money market situation is expected to ease with the UAE Central Bank announcing that short-term funds facility can now be accessed by banks.