Stock markets rise as Syria fears ease

11 September 2013

Dubai’s index gained 8.5 per cent, the highest daily increase since December 2009

Regional stock markets rose sharply on 10 September as tensions over a US airstrike on Syria eased.

Russia’s proposal to get the Syrian government to hand over its chemical weapons stockpile led to an increase of 8.5 per cent in Dubai, followed by Abu Dhabi (5.5 per cent), Qatar (4.9 per cent), Egypt (3 per cent), and Saudi Arabia and Kuwait (both nearly 3 per cent).

It was the first time in two weeks investors showed confidence again in regional stock markets. At the end of August, investors massively sold their stocks, fearing US military action in Syria would have reprecussions on economies in the wider region. It was also a chance for investors to cash in their stocks’ gains. In recent months, regional exchanges rose between 15 and 60 per cent year-on-year following signs of an economic rebound in the GCC.

The decreased likelihood of a US airstrike will probably attract investments back to the region’s stock markets, according to Dubai-based brokerage Al-Masah Capital. “Investors will look seriously at finding bargain stocks that this market sell-off has presented,” it said in a report.

The Dubai Financial Market Index’s performance on 10 September closed losses registered over the past two weeks – totalling 17 per cent – to just 8 per cent.

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