Dubai stocks led a rally across most Middle Eastern equities as a rebound gathered pace in global markets and oil headed for the biggest gain since May.
Dubai’s DFM General Index jumped 4 percent to 3,648.45 at the close in the emirate. Saudi Arabia’s Tadawul All Share Index and Abu Dhabi’s ADX General Index both climbed 3 percent, and Qatar’s QE Index posted the biggest three-day advance since December. Brent crude, the benchmark for half the world’s oil, increased 3.7 percent at 1:46 p.m. in London, the most on a closing basis since May 29.
Markets from Shanghai to London are rising amid a global relief rally after U.S. shares closed yesterday in the green, helping end a selloff that wiped more than $8 trillion from stocks worldwide. Gauges in the six-nation Gulf Cooperation Council, which is home to about 30 percent of the world’s proven reserves and relies on income from oil to fund government spending, tumbled after crude slumped to a six-year low this week.
“We’re highly correlated with what’s happening in the international markets and there’s some stability in the oil which is adding to momentum,” Dubai-based Tariq Qaqish, who oversees $150 million as the head of asset management at Al Mal Capital PSC, said by phone. “With the recent falls, these levels are attractive for some investors and we are seeing buying in some of the speculative stocks.”
This week’s three-day selloff dragged 12-month price-to-earnings ratios in Dubai and Saudi Arabia to the lowest since at least December.
Kuwait’s stock gauge rose 1.1 percent. Oman’s MSM30 Index added 0.6 percent. Egypt’s EGX 30 advanced 3 percent, the largest gain in more than three months.
(An earlier version of this story corrected an oil move in the headline.)