Wednesday 20 January 2021

Vaccine Rollout Lifts #Dubai Stocks to Top of the Equity Pile - Bloomberg

Vaccine Rollout Lifts Dubai Stocks to Top of the Equity Pile - Bloomberg

One of the world’s fastest vaccine rollouts is fueling one of its best stock rallies.

As the United Arab Emirates pushes its inoculation program, the Dubai Financial Market General Index has climbed about 12% this year, trimming its 10% slump in 2020. Only two major markets performed better. MSCI Inc.’s gauge of developing-nation stocks has advanced 8%.

“Vaccines are a prime reason for this,” said Divye Arora, a money manager at Daman Investments Psc in Dubai. “We have seen a move globally away from growth and defensive toward value and cyclical. Dubai offers both value and cyclical exposure.”

The UAE, the third-biggest oil producer in OPEC, has administered more than two million coronavirus vaccine doses, inoculating nearly a fifth of its population, as it tries to emerge from the pandemic. The campaign is seen as key to reviving the economy of Dubai, which is reliant on income from travel and tourism.



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