Dubai Stocks Gain, Halt Longest Weekly Slump Since Septemberby
A global stock rally helped fuel the biggest jump in Dubai equities since August, sending the Middle Eastern business hub’s main index to its first weekly gain in more than a month.
The DFM General Index rose 2.9 percent, the steepest advance since Aug. 27, as stocks climbed across the world after minutes from the last Federal Reserve meeting indicated policy makers largely agreed on a gradual pace of interest-rate increases. Dubai Islamic Bank PJSC climbed the most in seven months.
“We could easily continue our move higher” if oil rebounds and global sentiment remains supportive, said Hisham Khairy, the Dubai-based head of institutional trade at Mena Corp. Financial Services LLC, the emirate’s biggest brokerage. “The market needs a breather" after the recent selloff, he said.
Dubai led gains across the six-nation Gulf Cooperation Council, ending the worst run of weekly losses since September. Equities in the region have slumped as oil, the main source of revenue for governments in the region, fell below $45 in London for the first time in three months. Dubai’s slowing real-estate market exacerbated the selloff, with property companies leading declines amid disappointing earnings.
Brent crude, a benchmark for half of the world’s oil, rose 0.8 percent to $44.48 per barrel at 10:19 a.m. in London, heading for a second day of gains.
Dubai Islamic Bank rose 4.7 percent, the most since April. Emaar Properties PJSC added 3.2 percent, reversing a loss for the week. About 255 million shares changed hands in the emirate, compared with a 12-month daily average of about 417 million.