UAE government intervention revives market

Abu Dhabi/Dubai: Government intervention to boost confidence in the crisis-ridden stock market sent positive ripples through the bourses on Monday.

Both the Abu Dhabi Stock Exchange and Dubai Financial Market (DFM) closed higher after investors took to heart assurances by the Cabinet.

Investors at the Abu Dhabi Stock Exchange seemed relieved upon seeing "the first signs of healing".

Investor Khalid Ashoor said: "Today was very good but I'm afraid this may change due to happenings elsewhere in the world. The market is still ill and has not completely healed. But I hope for the best."

Hailing the government support, he said, "This will induce trust in the market. If the positive trend stays for two more days, I think even people who left the market will slowly start coming back." Ashoor has been investing since 1998.

A Jordanian investor, a dentist by profession and who owns a clinic, said: "Today is much better. I hope things improve over the coming days."

He has put in Dh550,000 in shares of which he lost more than Dh500,000.

Meanwhile, at the DFM a few investors broke into applause yesterday, but many had to remind themselves not to pin their hopes on a single day's gains.

A longtime Indian resident of Dubai who had lost 70 per cent of his initial investment since last week said he was resorting to day trading to make up his losses. He added that he wasn't confident enough about the market yet to invest long-term again.

A broker at the DFM said that while there was more activity in the market on Monday, it was unlikely to be the start of a new trend.