Dubai shares bounce back

Dubai shares rose the most in almost two weeks as US politicians started a fresh and semmingly fruitful attempt to reach agreement on raising the US$14.3 trillion debt ceiling and the world expressed optimism. Stocks rallied worldwide on speculation which is bound to stimulate global economies. US politicians on Saturday reached a tentative framework that includes immediate spending cuts of $1tn and the creation of a special committee to recommend additional savings of up to $1.8tn later this year, Bloomberg News reported. Bellwether Emaar Properties rose 2.1 per cent to Dh2.88 a share. Dubai Financial Market Company, the only Gulf Arab stock market to sell shares to the public, rose 1.7 per cent to Dh1.16. The Dubai Financial Market General Index advanced 0.7 per cent to 1,517.58. The index lost 0.3 per cent, or almost six points, on Wednesday and Thursday last week. The Dubai bourse's performance was due to "anticipation of a better opening on Monday for international markets," said Anastasios Dalgiannakis, an institutional trading manager at Mubasher Financial Services in Dubai. "Once American politicians agree on something meaningful, we should see international markets recovering a bit and translate to our market," he said. The Abu Dhabi Securities Exchange General Index was down 0.3 per cent to 2,619.70 on lackluster volumes. With no signs of a deal in debt ceiling, the World stocks had headed for their biggest weekly loss in almost a year on Friday. In the US, the Dow Jones Industrial Average fell 0.7 per cent to 12,143.20. In Europe, the FTSE 100 Index lost almost 1 per cent to close at 5,815.19. Kuwait's measure was unchanged at 6030.60; Bahrain's was down 0.5 per cent to 1,291.66; Oman's fell 0.6 per cent to 5,808.03; Qatar's rose 0.3 per cent to 8,402.86; and the Saudi Tadawul All-Share Index was up 0.5 per cent to close at 6,392.13. Congressional leaders and President Obama have announced they've cut a deal to avert a historic U.S. default, saying they have assembled a framework that cuts some spending immediately and uses a "super Congress" to slash more in the future.