Dubai Shares Snap Three-Day Decline on Global Growth Optimism, Oil Price
Dubai’s shares rose, snapping a three-day loss, as U.S. reports signaled a broadening global economic recovery. Oil traded above $90 a barrel.
Arabtec Holding Co., the United Arab Emirates’ biggest construction company, increased 2 percent after the Chief Financial Officer told CNBC Arabiya he expects earnings to improve. Emaar Properties PJSC, builder of the world’s tallest skyscraper, rose the most in a week and Gulf Navigation Holding, a shipper of oil and chemicals, advanced 2.3 percent. The DFM General Index climbed 1.2 percent to 1,668.68 at the 2 p.m. close in Dubai, bringing the gain for the week to 2.3 percent.
“Stronger oil and gains in international markets” are helping push local stocks up, said Tarek Lotfy, head of equities at Dubai-based Arqaam Capital Ltd.
The Standard & Poor’s 500 Index climbed to a two-year high yesterday after stronger-than-estimated growth in payrolls and service industries bolstered optimism in the economy. The MSCI Asia Pacific Index rose 0.7 percent today and the STOXX Europe 600 Index increased 0.9 percent at 4 p.m. in Dubai.
Crude oil for February delivery advanced as much as 0.5 percent to $90.71 a barrel. Prices are 8.6 percent higher than a year ago. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil. Oil last traded 0.3 percent lower at $90 a barrel.
Arabtec gained the most since Jan. 2 to 2.02 dirhams. Ziad Makhzoumi told CNBC Arabiya that Arabtec sees earnings improvement in the second half of 2011 and is optimistic about projects in Egypt. The company plans to open joint ventures to carry out projects, Makhzoumi added.
Emaar rose 1.7 percent, the most since Dec. 30, to 3.56 dirhams. Gulf Navigation climbed to 44 fils.
Qatar’s QE Index advanced 0.2 percent, while Abu Dhabi’s ADX General Index retreated 0.2 percent. Kuwait’s gauge lost 0.3 percent and Bahrain’s measure increased 0.5 percent. Saudi Arabia’s market was closed for the weekend.
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