UAE stocks unruffled as Greek result hits markets

UAE stocks escaped largely unscathed yesterday even as the results of Sunday’s referendum in Greece played havoc with global markets.

Shares in Europe fell sharply, as markets digested the news of Greece’s rejection of the terms of a bailout.

London’s FTSE 100 slipped 0.6 per cent, while France’s CAC 40 was 1.53 per cent lower. The euro dropped to a one-week low against the US dollar, before recovering to 1.1028.

In Asia, Hong Kong’s Hang Seng index closed down 3.1 per cent while Japan’s Nikkei was off 2 per cent. China’s Shanghai Composite ended up 2.4 per cent, its first positive close in four days.

However, this masked the fact that more than two-thirds of the index’s equities ended in the black, as state attempts to slow a sell-off of equities appear to have so far borne little fruit.

Shares in the Dubai appeared at first to follow the general downwards trend, immediately opening 1.4 per cent lower, but recovered gradually throughout the day, closing down just 0.3 per cent at 4,055.82.

Emaar Properties was among the main gainers, ending up 0.3 per cent at Dh7.77, while Emirates NBD fell 2 per cent.

Abu Dhabi’s headline index meanwhile closed up 0.3 per cent at 4,751.72, bolstered by a 3.2 per cent rise by Etisalat.

Egyptian equities were not so fortunate, however. The country’s headline index dropped 4.2 per cent, as controls on foreign exchange and internal violence, coupled with events in Greece, weighed on investor sentiment.

Shares in Emaar Misr, the newly listed Egyptian subsidiary of Emaar Properties, took a nosedive on their second day of trading yesterday.

The developer’s shares shed 9.9 per cent at Dh3.55, 6.6 per cent below the IPO price.

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