UAE stock market up more than 50% in 2009

The UAE stock market was the strongest Arab market in September as it gained 12.6 percent, bringing its year to date gains to more than 50 percent, a new report has said.

Investment bank Rasmala said the rally in the markets was driven by the real estate and telecom sectors; with key players such as Emaar Properties gaining 16.7 percent and Etisalat and Du gaining 12 percent and 14.4 percent respectively.

Concerns over Saudi banks' exposure to the troubled Saudi firms had a negative impact on banks' share price performance in August but this trend was reversed in September due to the agreement that was reached between local banks and the Saad Group to settle its SR9.7bn debt, Rasmala added.

The poorest performing Arab market in September was Kuwait as it lost 1.2 percent, bringing its year to date gains to a mere 0.4 percent.

Confusion surrounding the acquisition of a 46 percent stake in Zain impacted the stock negatively as it fell 14.5 percent and became the main drag on the market, the study found.

Growth in banking and petrochemicals stocks brought the Qatar market's year to date gains to 7.7 percent while the Omani market gained 3.6 percent in September bringing its year to date gains to more than 20 percent.

Bank Muscat was the main contributor increasing by 11.2 percent over the course of the month.

The Omani Central Bank governor said earlier this month that he expects the economy to grow by 1-2 percent in 2009.

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