[2008-03-19]  Dubai shares gain on cheap regional markets
Shares in Dubai gained 0.6 per cent to close at 5,617.63 yesterday as stocks in regional markets became cheap. Abu Dhabis main index was down 0.5 per cent at 4,578.24 points after it agreed with a foreign stock exchanges operator to explore new ventures.

Emirates NBD, the biggest bank in the Gulf, climbed 1.1 per cent to Dh14 while Arab Insurance Group topped the Dubai Financial Market (DFM) General Index with a rise of 14.8 per cent to Dh3.79. "Stocks in regional markets are relatively cheap and present an opportunity for investors now," said Jalal Faruki, senior institutional sales associate at Al Mal Securities, in a Bloomberg report.

The worlds fourth-largest marine port operator, DP World, staged a strong rally at the Dubai International Financial Exchange with a jump of 6.9 per cent to $0.78.

Meanwhile, Tom Healy, director-general of the Abu Dhabi Securities Market (ADSM) said the UAE stock markets are no longer immune to turmoil in global financial markets. "When you open up a market to international investors you automatically then link in with feelings in international markets," he said in a Bloomberg report. "To be immune from that you have to insulate yourself completely, keep it domestic and that already has been changed."

Foreign investors bought Dh6.9 billion worth of shares on DFM in the last week of October. This was more than three times the Dh2 billion in shares and bonds that they bought last week. DFM lost 5.6 per cent this month while ADSM declined 4.9 per cent. Last year the bourses gained 44 per cent and 52 per cent, respectively.

Emirates Telecommunications Corp, also known as Etisalat, dropped 1.3 per cent to Dh23.40 while International Fish Farming was ADSM biggest loser with a decline of 8.2 per cent to Dh6.59.



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