Jittery GCC markets soothed by Kerry's words
After days of non-stop decline, Dubai’s shares bounced back on Sunday to lead a regional recovery as jittery markets seemed to have settled in the wake of a statement made by US Secretary of State John Kerry that there is “only a political solution to Syria’s war, not a military one”.
Emirates NBD surged 6.8 per cent after four sessions of losses. Other major gainers on Sunday were Takaful-Em that rose by 9.65 per cent to Dh0.625, and Union Properties and Air Arabia, rising 4.1 per cent and 4.3 per cent, respectively. The three stocks that showed a decline included National Cement that dived 9.80 per cent, CBD that dipped 6.58 per cent and DP World that closed down 2.33 per cent.
Abu Dhabi’s index, however, declined 0.3 per cent to its lowest finish since June 26 to 3,528 points, mostly pulled down by banks and telecommunication sector. Gainers included Aldar, Abu Dhabi Commercial Bank and Union National Bank. Green Crescent Insurance Company, Sharjah Cement and Industrial Development Company sustained drops.
Kuwait’s bourse ended a 10-session downward spiral to inch up 0.3 per cent. Qatar’s index advanced 0.6 per cent, snapping a four-session drop and recovering from a 10-week low.
The Saudi Tasi index ended flat near Thursday’s two-month low after giving back the day’s gains.
Qatar’s QSI index closed 0.6 per cent higher at 9,258 points as Oman’s MSI advanced 0.6 per cent to 6,452 points, while Bahrain rose 0.06 per cent to 1,182 points.
Analysts in Dubai said the nervousness over an imminent US attack on Syria seemed to have subsided following a statement on Sunday by Kerry.
He met members of the Arab League in Paris to discuss the crisis in Syria and possible US-led military action against the country.
In a joint news conference with Qatari Foreign Minister Khalid bin Mohammad Al Attiyah, Kerry acknowledged that there is only a political solution to Syria’s war, not a military one.
Kerry also said that the US is considering a French suggestion of possibly bringing the Syria issue back to the United Nations Security Council after UN inspectors who investigated claims of chemical weapons use have finished their report. He said US President Barack Obama had not yet made a decision on the issue.