Dubai stocks soar the most in more than a year, as oil hits 5-mth high
Emaar Properties rose the most in nine months
Dubai stocks jumped the most in more than a year, leading an advance in Gulf Arab markets, after oil prices rebounded and global equities rallied.
The DFM General Index climbed 5.9 percent at 10:54 a.m. local time, the biggest increase since December 2014, as Emaar Properties PJSC soared the most in nine months. Qatar’s QE Index rose 4.6 percent as Abu Dhabi’s ADX General Index gained the most in 13 months.
Stocks rallied across the six-nation Gulf Cooperation Council after oil jumped the most since August on Friday. While governments have attempted to diversify their economies away from crude, the commodity remains the region’s biggest source of revenue. The equity advance also follows the biggest surge in world stocks since June 2012 on speculation central banks will expand stimulus measures to counter turmoil in financial markets.
“The global rally and oil price recovery is a great signal for investors here to buy,” said Hisham Khairy, the Dubai-based head of institutional trade at Mena Corp. Financial Services LLC, one of the United Arab Emirates’ largest brokerages. “If tomorrow the market opens higher, it would offer a great selling opportunity.”
Brent crude, a pricing benchmark for half of the world’s oil, soared 10 percent to $32.18 a barrel on Friday. U.A.E. Energy Minister Suhail Al Mazrouei sees the price of oil stabilizing either at the end of this year or the beginning of 2017. The GCC is home to about 30 percent of the world’s proven reserves.
The Bloomberg GCC 200 Index, which tracks some of the region’s top companies, climbed 2.2 percent. Kuwait’s stocks and Oman’s MSM 30 Index both rose 1.4 percent.