Abu Dhabi: The UAE stock markets rose sharply on Monday on Dubai World's debt restructuring talks winning support from its creditors and due to global economic recovery remaining on course despite underlying fears of another recession derailing the world economy.
Dubai World's announcement on Friday that it has come to a formal agreement with more than 99 per cent of its creditors to restructure approximately $24.9 billion of its liabilities, has prepared the grounds for a post-Eid share market rally.
The Dubai Financial Market index closed yesterday 2.43 per cent higher at 1,630.85, with gains led by Emaar, DFM, Arabtec, DP World, Dubai Islamic Bank and du. Around 239.28 million shares worth about Dh437.81 million were traded.
In Abu Dhabi, the Abu Dhabi Securities Exchange (ADX) general index closed 1.36 per cent higher at 2,566.56 with gains led by consumer, real estate, banking, energy and telecommunication stocks. All of the market's sub-indexes were back in the green.
About 39 million shares of Aldar worth Dh95.74 million were traded on the ADX. Overall, around 117.59 million shares worth Dh217.58 million were traded in Abu Dhabi.
Market analysts say the region's bourses are poised to go higher in the days ahead because of some attractive share valuations and third quarter company earnings looming on the horizon. Investors are viewing the current situation as an attractive opportunity to make gains as there are limited downside risks.