Dubai Stocks Lead Gulf Markets Higher on Iran Nuclear DealArif Sharif
Dubai stocks posted their biggest advance in more than three weeks, leading gains in Gulf Cooperation Council markets, after Iran reached a framework deal with world powers and rebels in Yemen retreated from the port city of Aden.
The DFM General Index climbed 1.4 percent to 3,665.56, its highest close since March 12. Qatar’s QE Index added 0.6 percent and Abu Dhabi’s ADX General Index rose 0.1 percent. The Tehran Stock Exchange’s main index jumped 3.5 percent.
Iran and six countries, including the U.S., agreed on a framework accord on April 2 over the Islamic republic’s nuclear program, with details to be worked out in a final deal in three months. Iran was the United Arab Emirates’ fourth-biggest trading partner in 2013, accounting for almost $32 billion of imports and exports, according to data compiled by Bloomberg.
“The fog on the Iranian issue has cleared now with the framework agreement,” Muhammad Shabbir, the head of equities at Rasmala Investment Bank Ltd., said by phone from Dubai on Sunday. “There has also been some movement in Yemen. Aden has fallen back to forces loyal to the President.”
Yemen's Houthi fighters withdrew from the presidential palace in Aden as the Saudi Arabia-led coalition targeted rebel positions. Saudi Arabia and regional allies started bombing Yemen last month to halt military gains by the Shiite rebels. More than 500 people have been killed in the past two weeks, according to the United Nations.
Dana Gas PJSC, a U.A.E.-based energy company, jumped the most since Dec. 21 to 44 fils. Damac Properties Dubai Co. rose 8 percent, the most since Feb. 15, after the company said it would consider buying into a 50-storey tower in London.
In Iran, the Tehran Stock Exchange’s Total Index advanced 3.5 percent to 70,261.7.
The rise “is a natural reaction to the country reaching a framework nuclear agreement,” Majid Zamani, the chief executive officer of Kardan Investment Bank, said by telephone from Tehran. “The perception of risk has decreased and the banking and auto industries, which were hit the most by the sanctions, are back again.”
Stocks in Iran have rallied on speculation the deal may lead to the lifting of sanctions weighing on the economy and oil production. U.S. and European sanctions have cut crude sales by more than half since they were tightened in mid-2012 to an average of 1.2 million barrels a day, according to a Feb. 10 report by the International Energy Agency.
Saudi Arabia’s Tadawul All Share Index lost 1.7 percent to the lowest close since Jan. 26. Jabal Omar Development Co., a real-estate developer in Mecca, led the decline with a 2.9 percent drop.
Egypt’s benchmark EGX 30 Index fell for a third day, decreasing 3.2 percent. Commercial International Bank Egypt SAE retreated the most since Dec. 14.
Israel’s TA-25 Index added 0.1 percent. Shares of natural gas explorers advanced with Delek Drilling LP rising 5 percent and Avner Oil Exploration LP gaining 4.6 percent.
The yield on Israel’s 3.75 percent benchmark bonds due March 2024 decreased four basis points to 1.47 percent, according to data compiled by Bloomberg.