Dubai Index Gains Most in Week After Stimulus, Oil; Saudi Rises – Bloomberg
Dubai shares advanced the most in
more than a week, led by Emaar Properties PJSC (EMAAR), as central banks
from China to Europe take additional stimulus measures and oil
gained. Saudi Arabia’s stocks gauge rose.
The Dubai Financial Market General Index (DFMGI) added 1.5 percent,
the most since Nov. 13, to close at 4,630.13. Emaar, the
developer of the world’s tallest tower, climbed 3.7 percent
before tomorrow’s shareholders’ meeting on its dividend payment.
Dubai Islamic Bank PJSC (DIB) added 1.6 percent. Saudi Arabia’s
Tadawul All Share Index rose 1.2 percent, the most since Nov. 2,
at 1:58 p.m. in Riyadh.
China, the world’s second-largest oil-consuming country,
cut interest rates last week for the first time since July 2012,
and European Central Bank President Mario Draghi said he will do
what’s necessary to raise inflation, sending the Standard &
Poor’s 500 Index to an all-time high. Brent crude climbed 1.2
percent last week to $80.36 a barrel. The Middle East is home to
some of the world’s biggest oil producers.
“Investors here in the interim will be hopeful the region
will indirectly benefit from this stimulative action,” Ramez Merhi, a Dubai-based director for asset management at Al Masah
Capital Ltd., said by e-mail. “With oil coming back above $80 a
barrel regional markets could ride this wave higher until more
clarity is released at the OPEC meeting this week.”
The 20 analysts surveyed by Bloomberg last week were
divided, with half forecasting the Organization of Petroleum
Exporting Countries will cut supply on Nov. 27 in Vienna to stem
a plunge in prices while the other half expect no change. Brent
has tumbled about 30 percent this year.
Emaar, the stock with the highest weighting on Dubai’s
benchmark index, climbed to 11.30 dirhams. DIB, the largest
Shariah-compliant lender in the United Arab Emirates, rose to
In Saudi Arabia, 155 shares rose, while seven declined.
Saudi Basic Industries Corp., the world’s biggest petrochemicals
maker, climbed 2.7 percent, poised for the biggest advance in a
Especially petrochemical stocks are gaining after “the
bounce back in the crude prices,” Sebastien Henin, who oversees
$100 million as head of asset management at the National
Investor in Abu Dhabi, said today by telephone. It’s “a
combination of the market being oversold due to the drop in oil
prices and gains in international equity markets,” he said.
Etihad Etisalat Co. (EEC), the phone operator known as Mobily,
dropped 0.4 percent after it suspended its Chief Executive
Officer Khalid Omar Al Kaf, pending an inquiry into auditing
errors. The shares have lost about $5 billion of their market
value this month.
Elsewhere in the region, Abu Dhabi’s ADX General Index and
Kuwait’s SE Price Index rose 0.1 percent. Oman’s MSM 30 Index
gained 0.9 percent, Bahrain’s measure advanced 0.5 percent,
while Qatar’s QE Index fell 0.7 percent. Egypt’s EGX 30 Index
rose 0.5 percent. Israel’s TA-25 Index lost 0.1 percent.
(An earlier version of this story corrected the closing
reference in the second paragraph.)
To contact the reporter on this story:
Sarmad Khan in Dubai at
To contact the editors responsible for this story:
Samuel Potter at
Claudia Maedler, Dana El Baltaji
Dubai Index Gains Most in Week After Stimulus, Oil; Saudi Rises – Bloomberg}