Dubai Financial Market rebounds as global rout persists

UAE stocks recovered ground in Monday trading, despite opening the day sharply lower in response to plunging Asian equities.

The Dubai Financial Market General Index plunged nearly 6 per cent in early trading before rallying in the second hour, inching into positive territory. The index was trading about half a per cent down at midday.

Shares in Abu Dhabi, which also opened sharply lower, were up around one per cent at the same time.

The falls come a day after Dubai’s index fell by 6.97 per cent in its worst day of sell offs in two years.

China’s Shanghai Composite fell by as much as 8.2 per cent in Monday trading, despite a move by authorities to allow pension funds managed by local governments to buy shares in an attempt to halt declines. The sell off had severely weakened bourses across Asia, with Japan and Hong Kong’s headline indices losing 4.32 per cent and 4.56 per cent respectively.

Brent crude was on the slide again this morning to six-and-a-half year lows, as it declined $1.22 to $44.24 a barrel on the London-based ICE Futures Europe exchange and was at $44.36 at 3pm Sydney time.

The fall in oil price came as Iran’s oil minister, Bijan Namdar Zanganeh, said on his ministry’s news website that it will expand output “at any cost” to defend market share.

More to follow.

jeverington@thenational.ae

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