As New York resumes trading, Gulf Arab markets bounce back

With New York resuming trading Wednesday following the two-day closure due to Hurricane Sandy, Gulf Arab investors fetched new spirit and sent market indexes higher Thursday, albeit on low turnover Amid bullish comments from Citigroup on the Dubai economy, the sheikhdom's local bourse Dubai Financial Market ended a three-day stutter mode and closed 0.22 percent higher at 1,623.20 points. On Wednesday, Citigroup said Dubai's recovery from the global economic downturn goes from strength to strength, and investor confidence has returned, with Dubai-related risk assets rallying strongly. Citigroup revised its forecast in Dubai's real GDP growth up to 5.8 percent for 2013, after 5.1 percent growth for 2012. Shares of developer Emaar Properties advanced 1.40 percent to reach 3.66 dirhams (around 1 U.S. dollar). The share of the region 's largest developer by market value has performed a double-top chart pattern, which led investment bank EFG Hermes to say that " on the medium-term, we expect Emaar to perform sideway trading between 3.40 dirhams to 3.70 dirhams (0.92 dollars to 1.01 dollars) The index of the international market NASDAQ Dubai, the FTSE NASDAQ Dbai UAE 20 Index closed at 1806.91 points, up 0.67 percent from the previous close. Shares of Dubai Ports (DP) World rose to an eight-month high at 12.11 dollars, after the world's third largest port operator said it has won an award letter from the port in Bombay, India, "to build and operate a single berth facility of 330 meters quay length until 2015 at investment volume of 200 million dollars." At the Abu Dhabi exchange, the benchmark index ADXGI closed flat at 2,673.44 points. Oil and gas company Dana Gas surged by 2. 44 percent, recovering from the 10-month low it hit Wednesday. Dana confirmed it has not paid the principal amount of a 920- million-dollar Islamic bond, but added it was in negotiations with bond holders to amend and extend the Islamic bond. Elsewhere in the region, the Qatar Exchange and the Muscat Securities Market in Oman added 0.67 percent and 0.51 percent, respectively. Kuwait could not join the slight rebound as a direct relief to the U.S. re-start of stock trading, and dived 1.90 percent, as shares lost across the board. Citigroup said political stalemate in Kuwait prevented the oil- rich Gulf state from reaching its full potential. "Following the dissolution of parliament earlier in the month, the cabinet has set the date for the next parliamentary elections on Dec. 1," said Citigroup Wednesday, "Controversially, however, the cabinet has also approved an amendment to the 2006 electoral law, which would limit the number of votes per eligible citizen to one, from four proscribed in the 2006 electoral law. This is being viewed by opposition as an attempt to stifle their representation in the parliament." The Saudi Tadawul market remained closed and will resume trading on Saturday.