The Dubai Financial Market entered severely overbought territory today after a 5.7 per cent spike in the price of Emaar Properties, its largest quoted company, to AED5.10. The index closed at 1,899, the highest for three years but around a quarter of the re-based previous all-time high set in early 2006.
The immediate catalyst for the Emaar share price jump was a note from HSBC Holdings, the global bank that closed its Dubai retail brokerage just before local stocks started their recent recovery. Agora Financial managing editor Chris Mayer also wrote about Emaar this week for his 20,000 newsletter subscribers and visits Dubai later this week.
Global equity correction?
Perhaps HSBC’s commentary on Emaar will prove to be equally as ill-timed as its exit from retail broking. Dubai stocks are unlikely to hold up if global financial markets now enter a correction phase as many nervous stock market traders are expecting this weekend.
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