Dubai Shares Rally 2nd Day on Oil, Global Stocks; Oman Gains Most in 2010
Dubai stocks rose for a second day as oil climbed above $73 a barrel and China said it remained a long-term investor in Europe, boosting appetite for riskier assets. Oman’s benchmark jumped the most since December.
Emaar Properties PJSC, developer of the world’s tallest skyscraper, rose 1.8 percent. Emirates NBD PJSC had the biggest gain since April 11. The DFM General Index advanced 0.9 percent to 1,605.22, paring the drop for the week to 5.1 percent. Oman International Development & Investment Co. led that country’s gauge higher as EFG-Hermes Holding SAE initiated coverage with a “buy” recommendation. Egypt’s EGX 30 gained 2.2 percent.
European stocks rallied and the euro advanced as China’s foreign exchange regulator said reports it was reviewing its euro holdings are “groundless.” Asian shares rose on bets corporate profits can withstand any slowdown caused by the European debt crisis. Crude climbed as high as $73.67 a barrel.
“External factors such as the euro, oil and Asian markets are all trading higher, lending support to the Middle East North Africa region,” said Julian Bruce, director of equity sales at EFG-Hermes. “Direction is led by European equity markets.”
Emaar climbed to 3.41 dirhams. Emirates NBD, the country’s biggest bank, gained 3.3 percent to 2.8 dirhams.
Oman’s index rose 2 percent, the most since Dec. 14, to 6,307.21. Oman International, known as Ominvest, advanced 7.2 percent, the most since June 7, to 0.4 rial. EFG set a share- price estimate of 0.54 rial.
Renaissance Services SAOG, Oman Cement Co. and Al-Anwar Ceramic Tiles Co. were also initiated with a “buy” recommendations at EFG, the Middle East’s largest investment bank.
Renaissance, a provider of services to the oil and gas industry, gained 2.8 percent to 0.71 rial, Oman Cement rose 3.4 percent to 0.662 rial and Al-Anwar increased 2.4 percent to 0.297 rial.
The Kuwait Stock Exchange Index added less than 0.1 percent. Qatar’s QE Index dropped 0.2 percent, Bahrain’s gauge slid 1.3 percent and Abu Dhabi’s ADX General Index fell 0.2 percent. Saudi Arabia’s market was closed for the weekend.