Dubai stocks gain on global rally
DUBAI: A global stock rally helped fuel the biggest jump in Dubai equities since August, sending the Middle Eastern business hub’s main index to its first weekly gain in more than a month.
The DFM General Index rose 2.9 per cent, the steepest advance since Aug.27, as stocks climbed across the world after minutes from the last Federal Reserve meeting indicated policy makers largely agreed on a gradual pace of interest-rate increases.
Dubai Islamic Bank climbed the most in seven months.
“We could easily continue our move higher” if oil rebounds and global sentiment remains supportive, said Hisham Khairy, the Dubai-based head of institutional trade at Mena Corporation Financial Services , the emirate’s biggest brokerage.”The market needs a breather” after the recent selloff, he said.
Dubai led gains across the six-nation Gulf Cooperation Council, ending the worst run of weekly losses since September.
Equities in the region have slumped as oil, the main source of revenue for governments in the region, fell below $45 in London for the first time in three months.
Brent crude, a benchmark for half of the world’s oil, rose 0.8 per cent to $44.48 per barrel at 10:19 am in London, heading for a second day of gains.
Dubai Islamic Bank rose 4.7 per cent, the most since April. Emaar Properties added 3.2 per cent, reversing a loss for the week.
About 255 million shares changed hands in the emirate, compared with a 12-month daily average of about 417 million.