Gulf Shares Gain on U.S. Bank Rescue Plan; Emirates NBD Rises
By Zainab Fattah
Sept. 28 (Bloomberg) — Persian Gulf shares advanced after U.S. lawmakers said they made a breakthrough in talks on a $700 billion plan to revive the credit markets and as the United Arab Emirates’ central bank allowed lenders to withdraw 100 percent of their reserve requirements to ease liquidity constraints.
Emirates NBD PJSC, the U.A.E.’s biggest bank by assets, led financial stocks higher. Abu Dhabi Commercial Bank PJSC had its biggest gain since Sept. 21, while Emirates Telecommunications Corp. rose for the first time in four days. Industries Qatar also climbed.
“What happens in the U.S. is very important because the more institutions go bust there, the higher is our companies’ risk of exposure,” Mohammed Ali Yasin, the managing director of Shuaa Securities in Dubai, said in a telephone interview today. “We’ve also seen liquidity returning through government institutions as more people understand the central bank’s plan.”
The Dubai Financial Market General Index rose 2.5 percent to 4,060.38, bringing the two-day gain to 4.4 percent. The Abu Dhabi Securities Exchange General Index increased 2.7 percent and Qatar’s Doha Securities Market 20 Index added 2 percent.
Negotiators resolved “our differences so we can go forward with a package to stabilize the market,” U.S. House Speaker Nancy Pelosi told reporters when negotiations ended after midnight Washington time. Lawmakers will review a written version of the plan later today, she said. The House may vote tomorrow.