Sept. 29 (Bloomberg) -- Dubai shares rose for a second time this week, adding to this month’s gain in Gulf markets, as the emirate raised $1.25 billion in a bond sale and emerging-market stocks climbed to the highest level since June 2008.
Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai, gained 0.8 percent. Drake & Scull International advanced for the first time in three days after the engineering company won a contract. In Kuwait, Mobile Telecommunications Co. soared the most in seven months after CNBC Arabiya reported Emirates Telecommunications Corp. offered to buy a stake in the company. The Dubai Financial Market General Index increased 0.7 percent to 1,702.43 at the 2 p.m. close in the emirate, bringing the surge so far this month to 15 percent.
Investors are “gaining confidence from reports of a positive reception for the Dubai government bond issue,” said Julian Bruce, director of equity sales at EFG-Hermes Holding SAE in Dubai. Gains in global markets are also helping to lift local stocks, he said.
Dubai is raising money for the first time since Dubai Word announced plans in November to delay payments on $24.9 billion of debt, roiling global markets. The emirate’s five-year, $500-million issue was priced to yield about 6.7 percent, according to terms of the transaction obtained by Bloomberg after the market closed. The $750-million 10-year note was priced to yield 7.75 percent.
Emerging-market stocks rose as China’s manufacturing accelerated, bolstering the growth outlook for Asia. The MSCI Emerging Markets Index climbed 0.9 percent, extending this month’s advance to 10 percent. The Standard & Poor’s 500 Index gained 0.5 percent yesterday after investors speculated that the U.S. Federal Reserve would buy more debt to try to safeguard the economy.
Crude for November delivery gained as much as 1 percent to $76.93 a barrel in electronic trading on the New York Mercantile Exchange. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.
Emaar increased to 3.80 dirhams. The builder of the world’s tallest tower said after the end of the trading day it plans to raise at least $375 million from the sale of convertible notes.
Drake & Scull climbed 1.1 percent, the most in almost a week, to 93 fils. The company won an 85 million-dirham ($23 million) contract in Syria for mechanical, electrical and plumbing work on the Rotana Gardenia Hotel and Furnished Apartments in the city of Homs.
Mobile Telecommunications, the phone company known as Zain, jumped 7.9 percent the most since February to 1,360 fils. CNBC Arabiya said Etisalat offered to buy 46 percent of the company. After markets in Kuwait City and Abu Dhabi closed Etisalat’s spokesman Ahmed bin Ali said the U.A.E.’s biggest phone company submitted a preliminary “conditional offer.”
Etisalat rose 0.9 percent to 10.8 dirhams, the highest since May. The Kuwait SE Price Index gained 0.9 percent and Abu Dhabi’s ADX General Index increased 0.6 percent.
The Bloomberg GCC 200 Index of Gulf stocks advanced 0.5 percent and Qatar’s QE Index jumped 0.9 percent to the highest since April 14. Saudi Arabia’s Tadawul All Share Index and Oman’s MSM 30 Index fell 0.2 percent while Bahrain’s measure retreated 0.5 percent.
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