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Abu Dhabi, Israel Shares Rise on Bernanke's Pledge on Economy; Oil Gains
Qatar and Israel shares advanced, leading a rally in Middle East markets, after U.S. Federal Reserve Chairman Ben S. Bernanke pledged to safeguard the recovery of the world’s biggest economy. Oil gained.
The QE Index climbed 0.5 percent, the most since Aug. 22, to 7,195.88 at the 12:30 p.m. close in Doha, led by Qatar Islamic Bank SAQ, the Gulf state’s biggest Islamic lender. The TA-25 Index rose 0.5 percent to 1,145.31 in Tel Aviv. Avner Oil Exploration LP surged 6.6 percent after partners at the Leviathan site approved plans for an offshore gas and oil prospect. The Bloomberg GCC 200 Index of Persian Gulf stocks increased 0.4 percent.
The gains are “in line with the closing of U.S. markets on Friday,” said Haissam Arabi, chief executive officer of Gulfmena Alternative Investments in Dubai. Bernanke said “what investors worried about a double-dip recession wanted to hear.”
Bernanke said last week the central bank will do “all that it can” to sustain an expansion that’s still restrained by weaker-than-anticipated consumer spending and “painfully slow” job growth. The Dow Jones Industrial Average climbed 1.7 percent on Aug. 27, and the Standard & Poor’s 500 Index gained 1.7 percent, the most in more than three weeks. The European Stoxx Europe 600 Index rose 0.6 percent.
Crude oil surged, posting its best weekly gain since July 23, after Bernanke’s comments. Oil for October delivery rose 2.5 percent to settle at $75.17 a barrel on the New York Mercantile Exchange on Aug. 27. Futures gained 2.3 percent last week. The six nations of the Gulf Cooperation Council, including Saudi Arabia and the United Arab Emirates, supply about a fifth of the world’s oil.
Egypt Advances
About 47 million shares traded in Abu Dhabi compared with the six-month daily average of 63 million. Qatar Islamic bank gained 1.2 percent, the most since Aug. 16, to 77.6 riyals.
Israel’s Avner Oil surged the most since June 6 to 2.202 shekels. The oil explorer said companies including Delek Group Ltd. and Noble Energy Inc. agreed on a drilling plan and budget for the offshore gas and oil prospect.
In North Africa, Egypt’s EGX 30 Index fell 0.1 percent to 6,465.08. The ADX General Index and Kuwait’s gauge climbed 0.3 percent each. Saudi Arabia’s Tadawul All Share Index rose 0.2 percent and Bahrain’s gauge declined 0.1 percent. Dubai’s DFM General Index retreated less than 0.1 percent.
Israel’s 10-year Mimshal Shiklit bonds maturing in January 2020 fell 0.1 shekel to 108.5 in Tel Aviv, pushing the yield on the 5 percent notes up 2 basis points to 4.26 percent.
To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net or
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