Dubai’s benchmark index advanced to the highest in almost four months on Sunday, leading gains in the Middle East, after the United Arab Emirates entered the FTSE Group indexes as an emerging market, reports Bloomberg. Shares of 21 companies joined the FTSE’s Global Equity Index after the close on Sept. 17. The Gulf Arab country was classified as a secondary emerging market; FTSE divides emerging markets into advanced emerging and secondary emerging markets. The DFM General Index gained 2.2% to 1,682.82, the highest since May 20, at the 2pm close in Dubai. Abu Dhabi’s gauge advanced 1%. Read more
Planned bank stress tests for Greece have been postponed as Athens prepares to follow up its European roadshow last week by raising more money in the capital markets, reports the FT. The so-called “troika” – the IMF, European Commission and European Central Bank – has agreed with Greece’s central bank to delay testing the solvency of the country’s struggling banks by one month until end-October. The delay means the banks’ nine-month results could be assessed, as well as the outcome of a €1.7bn capital raising by National Bank of Greece, the country’s largest lender, due for completion next month. Read more
Some highlights from Monday’s FTfm.
iShares launches swap-based ETFs
Until now, iShares has focused on delivering returns to investors by buying the constituents of a benchmark index. The new approach, widely used by competitors, will mean iShares has to buy over-the-counter derivatives from an investment bank to provide investors with exposure to a benchmark. Read more
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, argues that this week will show Europe’s debt crisis and the global configuration of currencies returning to the fore.
________ Read more