Dubai’s shares surged the most in more than two years as oil rose and investors bet stronger-than- forecast U.S. jobs data will bolster global growth, helping the emirate’s benchmark index extend a rally.
Arabtec Holding Co. (ARTC), the United Arab Emirates’ biggest construction company, surged the most since 2010. Dubai Financial Market PJSC (DFM) soared 9.7 percent. The DFM General Index (DFMGI) rallied 4.7 percent, the largest advance since December 2009, to 1,686.66, at the 2 p.m. close in the emirate. The Bloomberg GCC 200 (BGCC200) Index of Persian Gulf stocks added 1.1 percent.
Dubai’s shares have rallied 25 percent so far this year after improved earnings and dividends boosted investor confidence. They posted their first weekly drop since January last week, tumbling 5.4 percent amid speculation the surge may have been overdone. A U.S. report showing the best six-month streak of job growth since 2006 helped lift the Standard & Poor’s 500 Index (SPX) 0.4 percent on March 9.
“With international markets performing well, local sentiment has picked up,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the U.A.E.’s second-biggest bank by assets. “After the strong correction last week, some believe this is an opportunity to go back in. We feel the market may ultimately continue to improve in the long term.”
In the U.S., the 227,000 increase in payrolls last month topped the median projection of economists in a Bloomberg News survey. The jobless rate in the world’s largest economy held at 8.3 percent and Federal Reserve Chairman Ben S. Bernanke said the labor market remains “far from normal,” a sign policy makers continue to see merit in keeping interest rates low for several years.
About 503 million shares were traded in Dubai today, compared with the 12-month daily average of 135 million shares.
Oil for April delivery increased 0.7 percent last week to $107.4 a barrel on the New York Mercantile Exchange. Gulf Arab oil exporters, including Qatar and the U.A.E., supply about a fifth of the world’s oil. The MSCI Emerging Markets Index (MXEF) advanced 0.7 percent on March 9.
Arabtec increased 9.7 percent, the most since March 2010, to 2.93 dirhams. Dubai Financial Market surged the most since March 4 to 1.24 dirhams. Emirates Integrated Telecommunications Co. (DU) advanced 2 percent to 3.12 dirhams. The U.A.E.’s second- biggest phone company said last week it plans to pay its first dividend.
Abu Dhabi’s ADX General Index (ADSMI) increased 1 percent, the most since Feb. 26. Oman’s MSM 30 Index (MSM30) and Qatar’s QE Index (DSM) advanced 0.5 percent. Saudi Arabia’s Tadawul All Share Index advanced 0.7 percent. Kuwait’s Stock Exchange Price Index (KWSEIDX) decreased 0.4 percent. Bahrain’s BB All Share Index (BHSEASI) fell 1 percent, snapping a four-day rally.
In North Africa, the EGX 30 Index (EGX30) slumped 1.8 percent. In Israel, the TA-25 Index (TA-25) gained 0.5 percent. The yield on the country’s 5.5 percent notes due January 2022 rose three basis points, or 0.03 percentage point, to 4.74 percent.
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