Oil rally nudges UAE markets higher

Oil rose on Monday amid optimism over the implementation of a preliminary deal between Saudi Arabia, Russia, Venezuela and Qatar to freeze output at January levels if other producers join the pack.

Dania Saadi

February 22, 2016

Updated: February 22, 2016 04:00 AM

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Shares in Dubai erased year-to-date losses on Monday, riding the rally in oil prices.

The international crude benchmark Brent rose 2.9 per cent to US$33.97 per barrel in London. West Texas Intermediate inched up 3.2 per cent to $30.6 per barrel in early trading in New York.

Oil rose on Monday amid optimism over the implementation of a preliminary deal between Saudi Arabia, Russia, Venezuela and Qatar to freeze output at January levels if other producers join the pack.

Brent has lost more than 70 per cent of its value since June 2014 because of an oil glut, weak demand in Asia and a strong dollar.

The Dubai Financial Market General Index rose 2.4 per cent to 3,170.27, and up 0.6 per cent for the year.

Amlak Finance and Drake & Scull International rallied more than 7 per cent each.

“We expect the DFM index to rise 10 per cent in the coming period,” said Hisham Khairy, the head of institutional trading at Menacorp brokerage in Dubai. “It all depends on the global picture remaining stable, and the oil price.”

The Abu Dhabi Securities Market General Index inched up 2.1 per cent to 4,297.19, led by energy stocks. The energy firm Taqa jumped 7.3 per cent to Dh0.44. Sharjah-based Dana Gas rose 4 per cent to Dh0.51.

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