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Sept. 6 (Bloomberg) -- Dubai stocks rose for the first time in three days, reversing earlier losses, after the Swiss central bank set a ceiling on the franc’s exchange rate for the first time in more than three decades.
Emirates NBD PJSC, the United Arab Emirates’ biggest bank, rose to the highest in seven weeks. Dubai Islamic Bank PJSC, the biggest Shariah-compliant lender, gained. The Dubai Financial Market General Index increased 0.4 percent to 1,485.02 at the 2 p.m. close in Dubai, after earlier falling as much as 0.5 percent. Qatar’s gauge gained 0.4 percent, Kuwait’s measure strengthened 0.1 percent and Abu Dhabi’s index rose less than 0.1 percent.
“Markets traded on a marginally positive note after the comment by the SNB that it will not tolerate a move stronger than 1.2 francs per euro,” said Samer Darwiche, a financial analyst at Gulfmena Investments in Dubai. “This comment sent European stocks and the Euro into the positive territory.”
European stocks snapped the biggest two-day slide since 2008 after the Swiss central bank said it is prepared to spend unlimited quantities of currency to preserve it above 1.20 per euro. The franc depreciated at least 7.6 percent against all 16 of the most-active currencies monitored by Bloomberg. The Stoxx Europe 600 Index rose as much as 1 percent before sliding 1.4 percent.
Policy makers are “aiming for a substantial and sustained weakening of the franc,” the Swiss National Bank wrote in an e- mailed statement today.
Emirates NBD gained 1.4 percent to 4.31 dirhams, the highest since July 18. Dubai Islamic advanced 0.5 percent to 2.01 dirhams. Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai, climbed 0.4 percent, the first increase in three days, to 2.84 dirhams.
The Bloomberg GCC 200 Index, which tracks the biggest 200 companies in the Gulf, declined 0.3 percent. The Muscat Securities Market 30 Index lost 1.1 percent, snapping a six-day winning stretch, the longest since July. Saudi Arabia’s Tadawul All Share Index retreated for a second day, dropping 0.5 percent. The Bahrain All Share Index was unchanged.
--Editors: Susan Lerner, Shanthy Nambiar
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