The Dubai Financial Market (DFM) traded nervously Monday amid weak input from Saudi Arabia and Asia, but avoided a meltdown amid low trading turnover as Europe remained closed due to Easter holidays. The DFMGI ended 0.66% lower at 1,657.59 points. Emaar slipped 0.92%, but Arabtec Construction (up 1.82%) and Union Properties (3.37% higher) cushioned the fickle market. Positive remarks by Emirates NBD (off 1.05%) Chief Economist Tim Fox supported the gauge. "The easing in global risk aversion in recent weeks has benefitted Dubai," Fox said in his GCC Quarterly published Monday. "The emirate's 5-year Credit Default Swaps (CDS) has declined 110 basis points year-to-date and is currently at the lowest level since early August 2011. Dubai based issuers have taken advantage of the improved market conditions and issued $2.5bn worth of debt in Q1 2012, more than double the $1.1bn issued in Q1 2011." ENBD's Fox concluded: "Given the high refinancing requirements of Dubai Government Related Entities (GREs) this year, the strong start to the year in terms of debt issuance is encouraging and reduces some of the re-financing risk facing the emirate in 2012." Some 193m shares were traded, valued at Dhs255.4m.
No comments:
Post a Comment