Roller coaster week for Dubai shares – better times ahead?
Well, all in all a very interesting week on the Dubai stock markets.
Monday’s suggestion by Omar bin Sulaiman, a government official serving on the Dubai crisis committee, that the state might provide further help to the struggling construction and property sectors gave the markets a lift. Following months of predictably steady decline, this news boosted the DFMGI – with Arabtec and Union Properties notable gainers.
The next day, the Dubai Financial Market jumped 14.81 percent on the news that Borse Dubai would receive an additional $1 billion from the UAE federal government to help meet an outstanding $3.4 billion loan. The optimism carried over to the next day as the DFMGI jumped another 5.38 percent following the 1.81 percent and 0.31 improvements over the previous two days. Arabtec and Dubai Financial Market again enjoyed double figure gains, as did Emaar Properties.
However, despite its promising start to the week, by the close of trading on Sunday Emaar suffered a loss of almost ten percent as investors sought to cash in on a solid week and take advantage of a rare opportunity to make a profit. Overall the index fell 4.33 percent on the day’s trading.
Next week could be an interesting one as the Government of Dubai launches its bond programme to secure the $20 billion needed “for Dubai to meet its financial obligations and continue its development programme.”
Depending on their success, the markets could rocket or plummet accordingly. Keep your eyes on this one.
Related posts:
- Dubai shares lose ten percent in a week
- Dubai’s budget deficit may be lower than expected
- Dubai government moves to stabilise economy
- The Dubai Financial Market and NASDAQ Dubai
- Dubai scales down growth and records its first budget deficit
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