UAE, Qatar markets rally, gains seen shortlived
Dubai, June 18, 2012
The UAE and Qatar markets ended higher on Monday, tracking a relief rally in global markets after Greece's elections resulted in a slim parliamentary majority to pro-bailout parties.
Dubai's benchmark finished 0.7 per cent higher at 1,474 points and Abu Dhabi's index climbed 0.6 per cent to 2,460 points.
Property stocks rallied with bellwether Emaar Properties up 1.1 percent. Contractor Arabtec rose 1.1 per cent.
Investors see this move as unsustainable however, as hurdles remain to the resolution of the euro zone's debt crisis.
Oil futures fell on Monday, erasing early gains, on Greek concerns and analysts' assertions that oversupplied crude markets would cope with any loss of Iranian oil. Brent eased 0.04 percent to $97.55 a barrel by 1100 GMT.
'The rally is short-lived because oil has more downside,' says a Dubai-based portfolio manager on condition of anonymity. 'That said, it's an opportunity to buy the dips in UAE.'
In Qatar, the measure rose 0.3 percent to close at 8,277 points, up from Thursday's eight-month trough.
Banks supported the index with Commercial Bank of Qatar and Qatar National Bank up 1 and 0.2 percent respectively.
Relief over the Greek election result gave way to concerns about problems in Spain and the wider euro zone on Monday with European shares and the single currency reversing early gains.-Reuters