Investors shrug off IMF report

Regional share markets yesterday shrugged off the IMF's poor growth forecast for the UAE to close slightly higher. Traders were not especially optimistic, however, due to lingering worries about Dubai World and the health of regional banks. "Investors still don't know ... what the full picture looks like," said Eyad Abdul Nabi, the chief operating officer at Al Ramz Securities.

The Dubai Financial Market General Index ended 0.6 per cent higher at 1,565.48 after a sharp sell-off on Tuesday. Property stocks led the modest recovery. Arabtec Holding rose 3.4 per cent and Emaar Properties closed 1.7 per cent higher, despite news that the firm lost a major contract in Indonesia. Union Properties shares continued to fall after Credit Suisse raised questions this week about the company's cash flow. The stock dropped 5.6 per cent yesterday and is now off 14 per cent since Sunday.

The Abu Dhabi Securities Exchange General Index ended 0.12 per cent higher at 2,602.01, led by the industrial and consumer sectors. Abu Dhabi Aviation closed 10 per cent higher and Abu Dhabi National Hotels jumped 9.1 per cent. Abu Dhabi Commercial Bank closed flat the day after posting a net loss of Dh1.2 billion and disclosing exposure of Dh2.2bn to the Saudi conglomerates Saad Group and Ahmad Hamad Al Gosaibi and Brothers.

Elsewhere in the region, bourses continued to decline. The key indexes in Kuwait and Qatar dropped 1.3 per cent and 1.1 per cent, respectively. The Saudi Tadawul All Shares Index retreated 0.4 per cent. @Email:[e-mail]