Inflation to be around 2% in 2012: Suweidi

posted on 24/01/2012: 127 views

The United Arab Emirates' central bank is not worried about inflation this year, predicting it could average around 2 per cent, its governor Sultan Nasser Al-Suweidi said on Monday.

"There are no reasons to worry about inflation at this point in time because the sources of inflation are under control,” he told Reuters on the sidelines of an Islamic finance conference in the Omani capital.

"As long as the real estate sector is under pressure, it (inflation) is not likely to go up, hovering around 2 per cent in 2012,” he said.

UAE market

UAE's markets extend gains as investors accumulate battered stocks on expectations for fourth-quarter earnings. Dubai's index ends 0.5 per cent higher at 1,341 points, rising for a fourth session in five since last week's near seven-and-half-year low.

Telecoms operator du advances 0.3 per cent, Air Arabia climbs 1 per cent and contractor Arabtec rises 4.1 per cent. Abu Dhabi's benchmark gains 0.5 per cent to 2,353 points.

"We're seeing money coming in and allocating into bluechips whether in Dubai or Abu Dhabi,” says Marwan Shurrab, vice-president and chief trader at Gulfmena Investments.

"Banks in Abu Dhabi are in focus on expectations that Q4 numbers will be coming out by the end of the month. Investors are also looking forward to high-dividend yield stocks.”

National Bank of Abu Dhabi gains 2.4 per cent, Abu Dhabi Commercial Bank rises 0.7 per cent, while First Gulf Bank ends flat.

Strong results are expected from NBAD and FGB, which should give an indication for the rest of the sector. In Qatar, the index slips 0.4 per cent to 8,409 points, its lowest close since Oct.20.

Oman's measure edges up 0.1 per cent to close at 5,598 points, with Renaissance Services the main support. Shares in the company climb 2.1 per cent.

Saudi Arabia's benchmark falls for a second day as bank stocks weigh, but traders are bullish on the medium-term prospects for the kingdom's bourse.

A two-month rally stalled after bellwether Saudi Basic Industries Corp (SABIC) posted below-forecast fourth-quarter earnings.

Elsewhere, Dubai's benchmark rises for a fourth session in five since last week's near seven-and-half-year low. It is up 0.7 per cent to 1,343 points.

Investors fish from the bottom, lifting contractor Arabtec 4.7 per cent, Air Arabia 1.7 per cent and Union Properties 2.6 per cent. Abu Dhabi also rises with the index up 0.5 per cent to 2,351 points. – Reuters

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