Dubai: The UAE’s main equity indices jumped in early trade on Tuesday, with most stocks on the rise after two consecutive days of declines that saw the Dubai index plummet nearly 16 per cent.
On Tuesday, Dubai Financial Market (DFM) index rose 3.8 per cent shortly after trading began, while Abu Dhabi’s rose 4.2 per cent as local investors took a cue from their peers in Asia, with all the markets now trading in the green.
Blue-chips Emaar and Dubai Islamic Bank were trading more than 6 per cent higher shortly after the market opened, with barely any stocks in the red.
On Tuesday morning (UAE time), the Shanghai Composite was 1.4 per cent higher and the Hang Seng was up 1.8 per cent. Japan’s Topix was also 1.2 per cent higher.
This was even though the Monday mania saw the main US indices plunge by over 7 per cent amid growing fears about the spread of the coronavirus as well as oil prices dropping precariously.
Analysts had earlier said that though uncertainty remains about just how large the impact of the coronavirus is, there might be a temporary bounce backs in markets as investors buy the dip.
Elsewhere, Saudi Arabia’s Tadawul index shot up over 5 per cent after trade began, and Kuwait’s rose 4.8 per cent. These indices had opened 9 per cent and 10 per cent down on Monday.