Dubai stocks climbed, tracking a record close in U.S. equities, after the price of Brent crude rose to the highest since December. Abu Dhabi shares also gained.
Dubai’s DFM General Index added 2.1 percent to close at 4,172.14, the highest since Dec. 1. Gulf Navigation Holding, a shipping company specializing in oil and chemicals, was Dubai’s biggest percentage gainer, advancing the most in more than four months. Abu Dhabi’s ADX General Index strengthened 0.8 percent, the most since April 2.
The Nasdaq Composite Index jumped to a record on Friday after Google Inc. and Amazon.com Inc. rallied on earnings results. The gauge has almost quadrupled since global equity markets bottomed in March 2009. Brent crude gained last week on concern the crisis in Yemen, which lies on one side of the Bab el-Mandeb strait, the fourth-busiest global oil-trading chokepoint according to the Energy Information Administration, may disrupt supply.
“A mixture of several factors including a continued rebound in oil prices and a rally in the U.S stocks over the weekend is boosting investors’ confidence,” Tariq Qaqish, a fund manager at Al Mal Capital PSC, said by telephone from Dubai. Most of the current geopolitical concerns have been priced in, he said.
Oil rose 2.9 percent in the five days through Friday to $65.28 a barrel, the highest since Dec. 9. The six-nation Gulf Cooperation Council is home to about 30 percent of the world’s proven reserves. Most of their governments rely on revenue from crude to fund their budgets.
Saudi Arabia has led airstrikes against Shiite rebels in Yemen’s civil war, accusing them of being tools of Iran. While the rebels have broadened ties with the Islamic Republic since seizing the capital Sana’a last year, they deny taking orders from the government in Tehran.
Saudi Arabia’s Tadawul All Share Index, the benchmark equities gauge for OPEC’s biggest oil exporter, added 1.2 percent. Saudi Basic Industries Corp., the world’s top petrochemicals manufacturer by sales, led the advance to close at the strongest level since Nov. 24.
Dubai Investments PJSC, an investment-holding company, was the emirate’s top gainer by index points, with a 6.3 percent increase. Its Gulf Dynamic Swithchgear unit won projects worth 40 million ($11 million). Damac Properties, a Dubai-based real estate developer, rallied 7.1 percent after it said it has a development site in Abu Dhabi’s Al Reem Island that could have a sale value of about 1 billion dirhams.
Kuwait’s SE Price Index added 0.2 percent, while Qatar’s QE Index retreated 0.1 percent and Bahrain’s BB All Share Index slipped 0.9 percent. Oman’s MSM 30 Index dropped 0.2 percent
Egypt’s EGX 30 Index fell 1.1 percent. The central bank of the most populous Arab country kept interest rates on hold at its April 23 meeting. EFG-Hermes Holding SAE, the nation’s biggest investment bank, and Pharos Holding had predicted a 50 basis-point cut.
Israel’s TA-25 Index rose 0.3 percent, led by Opko Health Inc. Perrigo Co. was the biggest decliner, dropping 2.1 percent after its U.S.-listed shares retreated as Mylan NV proceeded with an unsolicited $31.2 billion bid for the company. Mylan opted to take its offer directly to shareholders rather than accept a separate takeover proposal from Teva Pharmaceutical Industries Ltd. Teva slid 1.6 percent.
“Teva and Perrigo are still in the headlines and that’s what’s moving the shares today as the companies close the gaps with their U.S. shares,” Guy Cordovi, head of International Trading at Excellence Nessuah Brokerage Ltd. in Petach Tikva, Israel, said today by phone.
The yield on Israel’s benchmark bonds due March 2024 declined one basis point to 1.37 percent, the lowest since the notes started trading in Jan. 2014.