Regional stock markets shrug off political unrest
Indices rebound but analysts warn investors to be cautious Workers have right to raise demands — Al Khonji
Abu Dhabi: The regional stock markets were on the rebound yesterday, shrugging off Bahrain's decision to close the country's stock exchange, the growing civilian unrest in Oman and Saudi Arabia and even the news that the troops loyal to Libya's leader Muammar Gaddafi are closing in on the rebels.
It was a day to do some bargain-hunting as there are good equities with attractive valuations.
However, market analysts caution that investor concerns over the growing political instability in the Middle East and North Africa remain and the markets will probably slide in the days ahead if matters don't come under control.
In Dubai, the DFM General Index gained for the first time in three days, increasing 0.5 per cent to 1,454.77 while Abu Dhabi's ADX General Index slipped 0.55 per cent to close at 2,600.32. Saudi Arabia's Tadawul All Share Index advanced by 1.4 per cent.
"Bahrain closing its stock market is not a good sign. It indicates that the political situation in that country may deteriorate further," Nabeel Farhat, partner at Abu Dhabi-based Al Fajer Securities told Gulf news.
"The investors are apprehensive. There's a cloud hanging over the direction of the markets in the days ahead due to the ambiguity surrounding the regional political situation," he added.
The cost of borrowing reached a new high in Bahrain after a state of emergency was declared. The yield on the nine-year international bond reached 6.84 per cent on Tuesday, a rise of 2.1 per cent since November. Fitch Ratings has lowered Bahrain's rating to BBB due to increased political risk and saying another downgrade is possible.
Omanis urged not to hamper work
Muscat: Oman Chamber of Commerce and Industry (OCCI) Chairman Khaleel Bin Abdullah Al Khonji has urged Omani workers not to hamper work although they have the right to raise their demands.
"There's a provision in the law that workers must give 21 days notice if they want to go on strike," Al Khonji clarified in an interview with Gulf News. The OCCI chief said that if the workers wished to protest by staging sit-ins then they should do so outside their working hours.
As far as the protests that have hit the private sector in banking, hotels and other sectors, he said that management must take care of its employees too.
"We are passing through a critical and difficult period and we all must come together and take care of each other," he said. He urged employees to think about the impact of strikes that the country has had in the last two weeks.
