Dubai and other Gulf indices climb after US-Russia deal on Syria stockpile was finalized
The stock index of Dubai increased to its highest level in three weeks as the threat of a US led attack on Syria had been lifted as the US and Russia agreed to eliminate Syria's chemical weapons stockpile.
The DFM General Index had jumped 4.8% to 2,659.93, its highest levels since August 26. When tensions arose because of a planned military counter strike against Syria, the index fell by as much as 15% after its highest level in five years. Just this week, Emaar Properties, the biggest weighted stock on the index, increased by 4.7% while Deyaar Development PJSC climbed 9.1%.
According to Naeem Brokerage's Head of Institutional Equity Sales, "The Syria(n) crisis is well behind us now and the markets have adjusted to those dynamics. A 15% to 20% downside since Syria was announced was a bit too much, certainly for Dubai,"
Other bourses responsed as well, with Saudi Arabia's All Share Index as well as Abu Dhabi's index increased by 1.8%. Qatar climbed 1.7%, Kuwait with 1.9%, Oman at 0,7% and Bahrain with 0.3%. Egypt's index, the EGX 30, increased by 0.5%.