| DUBAI, June 11
DUBAI, June 11 Markets in the United Arab
Emirates resumed gains on Tuesday, although trading was volatile
as an early-year surge in share prices faltered.
Dubai's index rose 0.6 percent, having been down as
much as 0.9 percent in early trade.
That initial drop followed a 2.3 percent decline on Monday,
Dubai's largest in 15 months, but low volumes - less than 20
million shares changed hands in the opening 30 minutes,
considerably below recent norms - indicated that few investors
were willing to sell at those prices.
Trading then picked up as stocks rebounded.
"The market, as expected, is volatile and there's no clear
trend at the moment," said Sebastien Henin, portfolio manager at
The National Investor.
Dubai is up 45.3 percent in 2013 and Abu Dhabi has
gained 35.6 percent over the same period, with this surge likely
to give way to more sustained profit taking eventually.
A potential trigger for a sell-off may be MSCI's decision on
whether to upgrade the UAE and Qatar to emerging market status.
The index complier will announce its verdict at 2100 GMT.
"The market will correct whether we get upgraded by MSCI or
not - it's more of a short-term consolidation period as we come
closer to the summer," said Musa Haddad, head of investment
advisory services at National Bank of Abu Dhabi.
"The market still looks very strong, volumes are positive
and liquidity is available, which shows the longer-term upward
trend isn't about to change."
MSCI has opted against upgrading the UAE and Qatar from
frontier markets classification on multiple occasions since
2009, but traders are hopeful the UAE will make the cut this
time following market reforms.
An upgrade would likely attract additional foreign money to
UAE stocks, although the country's weighting on MSCI's emerging
market index would be less than 1 percent so the impact could be
"The big question is how the market would react after the
announcement," added Henin.
Long-term investors will likely use any market pull-back to
accumulate shares at lower prices, said NBAD's Haddad.
"We expect the market to have further upside this year, but
at this point in time it will be in a consolidation phase," he
Emaar Properties was Dubai's main support, rising
Emirates NBD fell 1.9 percent. Dubai's largest
bank said on Tuesday it had completed the acquisition of BNP
Paribas' Egyptian assets after receiving regulatory
approval in the North African country.
Egypt's bourse rose 1.5 percent from Monday's
10-month low, ending a seven-session losing streak. Trading fell
to a week-low, with investors wary due to ongoing political
instability in the Arab world's most populous country.
Protesters are preparing for mass demonstrations on June 30
to mark President Mohamed Mursi's one-year anniversary in
"Egypt's market is driven by political factors and whenever
politics is the main driver, we would rather stay away," added
* The index rose 0.6 percent to 2,358 points.
* The index climbed 0.3 percent to 3,567 points.
* The index rose 1.5 percent to 4,849 points.
* The index slipped 0.2 percent to 9,355 points.
* The index fell 0.7 percent to 7,583 points.
* The index climbed 1.3 percent to 8,029 points.
* The index rose 0.4 percent to 6,657 points.
* The index climbed 0.3 percent to 1,200 points.