0619 GMT - Dubai's index rebounds, turning around initial losses as it makes its first gains since the emirate alarmed global markets by asking to delay payments on billions of dollar of debt.
'The break that we had gave investors time to absorb the news and global markets rebounded,' says Ayman el-Saheb, Darahem Financial Brokerage director of operations.
'I hope we don't see any profit-taking by the end of day.'
UAE markets had been closed since Dec. 1 for the UAE National Day celebrations.
Emaar Properties is up 3 percent, having opened 8.3 percent lower, while Dubai Financial Market climbs 7.3 percent in a broad-based rally.
Dubai's index rises 2.1 percent to 1,869 points.
DP World also rises, climbing 1.4 percent, although it remains down 16.7 percent since Nov. 24.
0601 GMT
Abu Dhabi's index opens higher for the first time since Dubai's debt crisis erupted, but Oman falls. ID:nGEE5B114H]
Abu Dhabi surges 3.8 percent to 2,671 points, lifted by market heavyweight Emirates Telecommunications Corp (Etisalat), which jumps 8.2 percent, although only 70,000 shares trade in the latter.
Oman's index declines in its first day's trading since the Eid Al-Adha holidays, dropping 1.9 percent to 6,238 points.
National Bank of Oman falls 6 percent after it says it has 8.7 million rials ($22.6 mln) in exposure to Dubai World Group.
0523 GMT
Dubai's index is facing further declines on Sunday, with more selling expected as investors dump the emirate's stocks following its shock debt standstill request.
Sunday will be only the third trading day since Nov. 25, when Dubai asked to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its main property subsidiary Nakheel, so there are residual sell orders pending.
Abu Dhabi is likely to face similar difficulties, but the outlook for the rest of the region is more upbeat.
'I think we still have a few more days of the UAE markets trying to digest the developments (on Dubai's debt),' says Ali Khan, managing director and head of brokerage at Arqaam Capital.
'Those who wish to sell have not completed selling because of the limit-down rules (where UAE stocks cannot fall by more than 10 percent daily), but I don't think it will repeat the falls we saw when the news first broke.
'We've already seen signs of buying coming into select stocks, with some ending Tuesday significantly higher than their intraday lows.'
The likes of Dana Gas, Aramex and Air Arabia were among the stocks to rebound, with the focus on sectors least likely to be hit by Dubai's debt woes.
'We will see more pressure in Dubai then anywhere else. People were selectively accumulating defensive stocks with high dividend yields on Tuesday such as utilities, telecoms and airline stocks,' says Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments. 'We will see an extended concentration today.'
Dubai fell 12.5 percent in the two trading days since its shock announcement, having been closed on Dec. 2-3 for UAE National Day. Abu Dhabi lost 11.6 percent over the same period. Property and bank stocks were hardest hit, with bellwether Emaar Properties falling 18.8 percent and Dubai Islamic Bank dropping 17.7 percent. These sectors are likely to again struggle, says Khan.
'Real estate and banking fell only because they contain the large caps and are the most liquid stocks and are hence most widely held by international investors and therefore bear the brunt of any major liquidity moves,' adds Khan.
Saudi Arabia was steady on Saturday, slipping 1.1 percent in its first day's trading since Nov. 25 and both the Qatar and Kuwait bourses have reclaimed most of their initial Dubai-driven losses, so it seems the rest of the region should be able to weather the storm and move sideways until year-end.
'There was a knee jerk reaction on other markets, but they didn't take long to recover as investors began to understand the level of exposure, which is minimal or in some cases zero,' adds Khan.
(Reporting by Matt Smith; Editing by Thomas Atkins) Keywords: MIDEAST STOCKS (matt.smith1@thomsonreuters.com; +971 4 391 8301; Reuters Messaging: matt.smith1@thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'The break that we had gave investors time to absorb the news and global markets rebounded,' says Ayman el-Saheb, Darahem Financial Brokerage director of operations.
'I hope we don't see any profit-taking by the end of day.'
UAE markets had been closed since Dec. 1 for the UAE National Day celebrations.
Emaar Properties is up 3 percent, having opened 8.3 percent lower, while Dubai Financial Market climbs 7.3 percent in a broad-based rally.
Dubai's index rises 2.1 percent to 1,869 points.
DP World also rises, climbing 1.4 percent, although it remains down 16.7 percent since Nov. 24.
0601 GMT
Abu Dhabi's index opens higher for the first time since Dubai's debt crisis erupted, but Oman falls. ID:nGEE5B114H]
Abu Dhabi surges 3.8 percent to 2,671 points, lifted by market heavyweight Emirates Telecommunications Corp (Etisalat), which jumps 8.2 percent, although only 70,000 shares trade in the latter.
Oman's index declines in its first day's trading since the Eid Al-Adha holidays, dropping 1.9 percent to 6,238 points.
National Bank of Oman falls 6 percent after it says it has 8.7 million rials ($22.6 mln) in exposure to Dubai World Group.
0523 GMT
Dubai's index is facing further declines on Sunday, with more selling expected as investors dump the emirate's stocks following its shock debt standstill request.
Sunday will be only the third trading day since Nov. 25, when Dubai asked to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its main property subsidiary Nakheel, so there are residual sell orders pending.
Abu Dhabi is likely to face similar difficulties, but the outlook for the rest of the region is more upbeat.
'I think we still have a few more days of the UAE markets trying to digest the developments (on Dubai's debt),' says Ali Khan, managing director and head of brokerage at Arqaam Capital.
'Those who wish to sell have not completed selling because of the limit-down rules (where UAE stocks cannot fall by more than 10 percent daily), but I don't think it will repeat the falls we saw when the news first broke.
'We've already seen signs of buying coming into select stocks, with some ending Tuesday significantly higher than their intraday lows.'
The likes of Dana Gas, Aramex and Air Arabia were among the stocks to rebound, with the focus on sectors least likely to be hit by Dubai's debt woes.
'We will see more pressure in Dubai then anywhere else. People were selectively accumulating defensive stocks with high dividend yields on Tuesday such as utilities, telecoms and airline stocks,' says Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments. 'We will see an extended concentration today.'
Dubai fell 12.5 percent in the two trading days since its shock announcement, having been closed on Dec. 2-3 for UAE National Day. Abu Dhabi lost 11.6 percent over the same period. Property and bank stocks were hardest hit, with bellwether Emaar Properties falling 18.8 percent and Dubai Islamic Bank dropping 17.7 percent. These sectors are likely to again struggle, says Khan.
'Real estate and banking fell only because they contain the large caps and are the most liquid stocks and are hence most widely held by international investors and therefore bear the brunt of any major liquidity moves,' adds Khan.
Saudi Arabia was steady on Saturday, slipping 1.1 percent in its first day's trading since Nov. 25 and both the Qatar and Kuwait bourses have reclaimed most of their initial Dubai-driven losses, so it seems the rest of the region should be able to weather the storm and move sideways until year-end.
'There was a knee jerk reaction on other markets, but they didn't take long to recover as investors began to understand the level of exposure, which is minimal or in some cases zero,' adds Khan.
(Reporting by Matt Smith; Editing by Thomas Atkins) Keywords: MIDEAST STOCKS (matt.smith1@thomsonreuters.com; +971 4 391 8301; Reuters Messaging: matt.smith1@thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
