Dubai Shares Rise on Oil Gain, Before Earnings as Qatar Climbs

Dubai’s benchmark stock index increased the most in more than a week after oil posted its largest quarterly gain this year and before companies in the emirate report third-quarter financial results.

Arabtec Holding Co. (ARTC), the United Arab Emirates’ biggest construction company, rallied the most since May after tumbling 11 percent last week. Dubai Islamic Bank PJSC (DIB), the U.A.E.’s biggest shariah-compliant lender, rose 1 percent. The DFM General Index (DFMGI) climbed 0.6 percent, the largest gain since Sept. 19, to 1,578.79 at the close in Dubai. The measure rallied 8.7 percent this quarter. Qatar’s QE Index advanced 0.2 percent today and the Bloomberg GCC 200 Index (BGCC200) of the region’s top 200 equities rose 0.4 percent.

“Investors are waiting for some insight into third-quarter results as they will determine the market direction” in the near term, said Nabil Rantisi, managing director of brokerage at Abu Dhabi-based Menacorp. “Third-quarter results have been priced in,” still some companies “may really beat estimates.”

Companies in Saudi Arabia will kick off the earnings season in the coming days. Emaar Properties PJSC (EMAAR), which has the biggest weighting on Dubai’s index, may post an 8.6 percent advance in third-quarter net income to 441 million dirhams ($120 million) next month, according to the median estimate of three analysts compiled by Bloomberg. Dubai, the second-largest of seven sheikhdoms that make up the U.A.E., relies on foreign trade, tourism and property for growth.

Oil Climbs

Shares of Emaar, developer of the world’s tallest skyscraper, were unchanged after earlier rising as much as 1.4 percent. The stock was the best-performing on Dubai’s gauge in the third quarter, rallying 24 percent. Arabtec soared 3.3 percent today, the biggest increase since May 14, to 2.52 dirhams.

Dubai Islamic gained the most since Sept. 19 to 1.98 dirhams. About 83 million shares traded in Dubai today, compared with a 12-month daily average of 147 million shares.

Oil capped the biggest quarterly increase this year on concern that escalating Middle East tension will disrupt supplies and as gasoline surged to a five-month high. Prices climbed 8.5 percent in the third quarter to $92.19 a barrel. The U.A.E, Saudi Arabia (SABIC) and four other members in the Gulf Cooperation Council supply about a fifth of the world’s oil.

Saudi Arabia’s Tadawul All Share Index (SASEIDX) climbed 0.5 percent, while Kuwait’s Stock Exchange Price Index (KWSEIDX) slipped 0.1 percent. Abu Dhabi’s ADX General Index (ADSMI) and Oman’s MSM30 Index (MSM30) gained 0.1 percent. Bahrain’s BB All Share Index (BHSEASI) climbed 0.4 percent.

In North Africa, Egypt’s EGX 30 Index (EGX30) decreased 1.1 percent to 5,821.82, the lowest close since Sept. 23. The measure gained 24 percent this quarter, making it the world’s best performing benchmark stock index in the period.

Israel’s markets were closed for a holiday.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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