UAE Financial Market Update
UAE sees 1.3% growth in 2009, 3% in 2010
UAE Minister of Economy Sultan Bin Saeed Al Mansouri has said during the sidelines of World Economic Forum summit in Dubai that the country is seeing economic growth of up to 3% i 2010 and that this year's growth would be 1.3%. Al Mansouri attributes this year is a modest growth, saying, "If you take inflation which used to be 12% and now it's down to three per cent, if you minus that from the overall GDP growth as it is calculated, we will manage 1.3% growth in 2009."
DFM falls slightly
The Dubai Financial Market (DFM) fell 0.81% to 2,129.75. Only four stocks; DIB (2.55%, to Dhs2.82), Alsalamsudan (2.48%, Dhs2.48), EmiratesNBD (1.54%, Dhs4.62) and Masq (0.55%, Dhs91.00) rose, while 19 fell and four held steady.
ADX dips with Insurance only rising sector
The Abu Dhabi Securities Exchange (ADX) ended the day's trading down by 0.85% at 2,924.56, with Insurance the only sector to see an increase. Of the 35 traded stocks, 27 fell, while only five rose. Abu Dhabi National Insurance Co was the day's biggest riser, moving up 10% to Dhs7.15.
UAE: Basel II system in place
The Central Bank of the UAE has said the Basel-II system has been implemented, asking for tougher capital adequacy levels for a sound banking industry, Khaleej Times has reported. Under the new system, lenders have been directed to maintain a minimum capital requirement of 11% at all times, which would be increased to 12% by June 30, 2010. Furthermore, main banks in the country are expected to migrate to the Foundation Internal Ratings Based approach, in due course.
ADX slips 0.48%
The Abu Dhabi Securities Exchange (ADX) fell by 0.48% to 2,949.69. Arkan Building MAterials posted the highest rise of the day, moving up by 6.62% to Dhs3.32. Dhafra Insurance fell furthest, going down by 9.5% to Dhs4.57.
UAE money supply growth slowing
According to data by the UAE's central bank, the country's M3 money supply in October grew 10.9%, compared with 13.4% in September, Bloomberg has reported. M2 money supply, which excludes government deposits, rose 11%, up from 7% in September. M1 money supply, a narrower measure, had contracted 0.2% in October, compared with shrinkage of 6% the month before.
DFM sees only three rising stocks
The Dubai Financial Market fell 0.91% to 2,178.53. Only three stocks rose, while 22 fell and four held steady. Of the three rising stocks ACICO was the only one to have any major advances, going up by 13.81% to Dhs5.85.
ADX falls minimally
The Abu Dhabi Securities Exchange (ADX) fell a minimal 0.1% to 2,963.85. Fifteen stocks fell, 11 rose and seven held steady. The National Corp for Tourism and Hotels was again one of the strongest stocks, going up by 9.93% to Dhs8.30.
Aabar looks to raise Daimler stake
Khadem Abdulla Al-Qubaisi, Chairman of Abu Dhabi's Aabar Investments has said that the firm is in talks with Germany's Daimler AG to raise its stake to 15% from 9.1%, Bloomberg has reported. The timing of a stake increase will depend on the stock price, he said. Daimler's shares have surged 77% from the €20.27 per-share price Aabar paid in March, giving the fund a gain of some €1.5bn.
Second half of Dubai bonds 'before year end'
Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Dubai's Supreme Fiscal Committee has said that the second half of the emirate's $20bn bond program will be issued before the end of this year, Bloomberg has reported. The first $10bn had been secured by selling bonds to the country's central bank in February. Dubai and its state-owned companies have to repay $15.8bn of bonds and loans maturing this year, $9.2bn in 2010, $19.8bn in 2011 and $17.3bn in the following year, according to a Deutsche Bank AG report in August.
It looks like you are using a Mac - check out our 
Web Feeds