- Bloomberg BGCC 200 Index rallies 6.8% in five-day period
- Brent crude rises above $33 a barrel in second week of gains
Equities in the Arabian Gulf gained, extending their best weekly rally in five years, as the rebound in crude boosted the outlook for the world’s biggest oil-exporting region.
The Bloomberg GCC 200 Index, which tracks 200 companies in the six-nation Gulf Cooperation Council, gained 2.8 percent on Thursday, capping a five-day advance of 6.8 percent. Dubai’s DFM General Index jumped 3.8 percent on the final day of the week’s trading, the most among more than 90 gauges tracked by Bloomberg worldwide.
The rally trimmed 2016 losses for the BGCC measure to 11 percent as Brent crude headed for its second weekly advance. Bets that the Federal Reserve won’t raise interest rates in the next few months as policy makers monitor global developments are also boosting demand for riskier assets, with the MSCI Emerging Markets Index climbing 1.4 percent this week.
Brent crude rose 1.9 percent to $33.74 a barrel at 4:02 p.m. in Riyadh on Thursday, bringing its weekly gain to 4.8 percent. The GCC is home to about 30 percent of the world’s proven oil reserves.
The Tadawul All Share Index added 3.2 percent, while equity gauges in Qatar and Abu Dhabi climbed 3.3 and 2.2 percent, respectively. Shares in Oman, Bahrain and Kuwait also advanced.