UAE stocks recover after Dubai debt crisis losses AFP

06.12.09

DUBAI — The Dubai and Abu Dhabi stock markets recovered on Sunday amid an apparent return of confidence, closing up more than one and almost four percent respectively, after heavy losses over Dubai's debt woes.

After a four-day break, Dubai's DFM Index, which dropped 12.5 percent in two days of trading last week, closed at 1,853.13 points, 1.18 percent up from its closing on Tuesday, in a session of heavy fluctuations.

Abu Dhabi Securities Exchange, which shed 11.6 percent of its capitalisation last week, closed 3.89 percent up at 2,673.12 points.

But as Abu Dhabi stocks firmed up, Dubai stocks appeared volatile with the index fluctuating from a 2.4-percent rise in the morning to a drop of around two percent into the red before recovering ahead of the close.

"The market did not expect this quick a recovery in Dubai ... This shows that many investors are now convinced the media campaign (about Dubai's debts) was exaggerated," said al-Fajr Securities financial analyst Humam al-Shamaa.

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