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Dubai shares lift index back above 2,000 mark

Dubai's main index ended 8.15 percent up at 2,142 points as most Gulf Arab bourses rebound and investors hone in on stocks they regard as cheap.

Heavyweight Emaar Properties, which is trading at 2.47 times expected 2008 earnings, surged 14.98 percent.
Dubai Islamic Bank and Dubai Investments soared 14.96 percent and 14.41 percent respectively.

"This is not a question of confidence, this is just a rebound that could have happened any day because the falls in the market have just been too steep," said Chahir Hosni, sales manager at EFG Hermes, citing the 2,100-point level as a significant support level.

In Abu Dhabi, the index gained 3.3 percent, led higher by Etisalat, which gained 3.94 percent. National Bank of Abu Dhabi and First Gulf Bank rose 2.34 percent and 5.34 percent.

Kuwait's benchmark ended 1.59 percent lower at 8,552 points as negative sentiment escalates after trading on the bourse was suspended and fears of a global recession return.

Mobile Telecommunications (Zain) dropped 5.1 percent and National Bank of Kuwait slid 8.77 percent.

"People are cautious after the suspension, you can see that because trading volumes are very low," said Ammar Hajeyah, asset manager at Global Investment House.

"This is a continuation of negative sentiment caused by what is happening in (the markets of) our GCC neighbours and globally," he added.

Qatar's main index closed up 0.1 percent at 5,591 points, led by Industries Qatar, which rose 2.62 percent.

Bahrain's main index closed 1.39 percent down at 2,003 points.

Saudi Basic Industries Corp climbed 4.04 percent, helping the index rebound in line with some of the other Gulf Arab bourses.

Banque Saudi Fransi and Al Rajhi Bank rose 2.12 percent and 1.24 percent respectively.

"The market is rebounding after the massive declines we've witnessed," said Abdullah al-Aqeel, equity trader at Samba Financial Group.

Aqeel says the G20 conference which saw world leaders pledge rapid action to try to restore global growth and expected positive company results in Saudi Arabia were helping to convince bargain hunters to re-enter the market.

The benchmark rose 1.57 percent to 5,229 points.

Gulf stocks continued their losing streak on Sunday as concerns over the health of the global economy continued to weigh on investor sentiment.

Five of the seven regional markets traded lower, with losses led by Dubai, which closed below the 2,000-point mark for the first time since November 2004.

Dubai's main index tumbled almost six percent, dragged down by real estate and banking stocks.

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