Dubai’s benchmark stock index rose the most in more than a week after dividend announcements by companies including Dubai Investments PJSC improved sentiment and as oil rebounded.
Dubai Investments, the owner of stakes in more than 40 companies, advanced 5.1 percent. Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest bank complying with Shariah rules, rose for the second time this week. The DFM General Index climbed 0.7 percent, the most since March 13, to 1,655.50 at the 2 p.m. close in the emirate.
The measure has rallied 22 percent this year as companies posted improved earnings and dividends. The board of Dubai Investments, which posted a 75 percent drop in 2011 profit, recommended a full-year cash dividend of 5 fils a share. Dubai Islamic said today it will pay a 2011 dividend of 12.5 fils a share, more than the 10 fils it had proposed on March 1.
“The Dubai Investments dividend was a surprise and Dubai Islamic Bank’s dividend was a surprise increase,” said Saad al Chalabi, an institutional trader at Al Ramz Securities in Abu Dhabi. “That improved sentiment.”
Dubai Investments rose to 92 fils. Dubai Islamic, which posted a 25 percent increase in full-year profit, advanced 1.4 percent to 2.22 dirhams.
Oil for May delivery rose as much as 0.7 percent to $106.86 a barrel in electronic trading on the New York Mercantile Exchange after an industry report showed crude stockpiles fell in the U.S., the world’s biggest consumer of the commodity. Gulf Arab oil exporters, including Qatar and the U.A.E., supply about a fifth of the world’s oil.
Saudi Arabia’s Tadawul All Share Index and the Bloomberg GCC 200 Index advanced 0.3 percent. Abu Dhabi’s ADX General Index and Kuwait’s Stock Exchange Price Index climbed 0.3 percent, while Bahrain’s BB All Share Index rose less than 0.1 percent. Oman’s MSM 30 Index was little changed and Qatar’s QE Index fell 0.1 percent.