UAE bourses rise ahead of 'emerging market' decision

Markets Update: Local markets crept higher ahead of a crucial decision from MSCI, the index provider, which could bring billions of dollars of inflows.

Local markets crept higher ahead of a crucial decision from MSCI, the index provider, which could bring billions of dollars of investment inflows.

The UAE and Qatar will learn by tomorrow morning whether they have done enough to secure an upgrade to "emerging market" status, their fifth attempt since 2009. The decision is due at 1am on Thursday.

The Dubai Financial Market General Index gained 0.3 per cent in early trading to 1,484.11, while the Abu Dhabi Securities Exchange General Index advanced 0.2 per cent to 2,473.21.

Emaar Properties, Arabtec and Tamweel led gains in Dubai.

But few investors are holding out hope of an upgrade this year, with many saying the two countries have done nothing to improve their chances since the last failed attempt to secure entry to the MSCI Emerging Markets index in December.

The Qatar Exchange Index sank 0.2 per cent to 8,293.50 as markets opened. Qatar has retained restrictions on international investment in local companies since then.

Global markets have rallied amid growing optimism that the euro zone will be able to resolve its debt issues and speculation that the US Federal Reserve may add additional stimulus measures at a meeting in Washington DC later today.

Asian markets rose after Japanese data showed exports increased in May, pointing to higher than expected demand from companies across the continent.

The Nikkei 225 rose 1.1 per cent to 8,740.00 and the Hang Seng Index advanced 0.6 per cent to 19,555.00.

Oil prices increased, with Brent crude futures rising 8 cents to $95.94 per barrel.

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