- OPEC oil ministers hold `successful' meet on market stability
- Emaar Properties drives DFM General Index on unit's profit
Dubai stocks led gains across most Gulf Arab equities, spurred by an initial increase in Brent crude after oil ministers from two of the world’s biggest producers met to discuss stabilizing the market.
The DFM General Index rose 1.9 percent to close at the highest level in a month. The biggest contributor to the move was Emaar Properties PJSC, the developer of the world’s tallest building, which gained 3.1 percent after its mall unit reported a 23 percent jump in 2015 profit. Saudi Arabia’s Tadawul All Share Index pared its increase to 0.2 percent from as much as 1.3 percent.
Saudi Arabian Oil Minister Ali al-Naimi met with his Venezuelan counterpart on Sunday in Riyadh, the Middle Eastern nation’s petroleum ministry said in a statement, without elaborating on steps required to shore up the market.
“The Saudi-Venezuelan talks on coordinating oil supply are boosting sentiment," said Nabil Farhat, an Abu Dhabi-based partner at Al Fajr Securities. Meanwhile there’s an “expectation of good earnings from major real estate developers like Emaar Properties, Damac Properties and Aldar Properties,” he said.
Brent crude, a benchmark for half the world’s oil, climbed as much as 1.8 percent before falling 2.2 percent to $33.30 per barrel at 3:38 p.m. in Riyadh. The GCC is home to about 30 percent of the world’s proven reserves. Volatility across equities in the six-nation Gulf Cooperation Council, which depends on income from crude to fund most government spending, soared in January as oil prices dropped to the lowest level since 2003.
Shares of Emaar Malls Group PJSC gained as much as 3.6 percent before closing unchanged. The company is about 85 percent owned by Emaar Properties. Qatar’s QE Index added 0.8 percent and Oman’s MSM 30 Index increased 1.9 percent, the most in more than a week. Kuwait’s SE Price Index rose 0.1 percent while Bahrain’s BB All Share Index slid 0.1 percent. Abu Dhabi’s ADX General Index was little changed.