Gulf stocks end in green as oil surges

29/01/2016 09:50 AST

Equities in the Gulf region gained, extending their best weekly rally in five years, as the rebound in crude boosted the outlook for the world’s biggest oil- exporting region.

The Bloomberg GCC 200 Index, which tracks 200 companies in the six-nation Gulf Cooperation Council, gained 2.8 per cent on Thursday, capping a five-day advance of 6.8 per cent.

Dubai’s DFM General Index jumped 3.8 per cent on the final day of the week’s trading, the most among more than 90 gauges tracked by Bloomberg worldwide.

The rally trimmed 2016 losses for the BGCC measure to 11 per cent as Brent crude headed for its second weekly advance.

Bets that the Federal Reserve won’t raise interest rates in the next few months as policy makers monitor global developments are also boosting demand for riskier assets, with the MSCI Emerging Markets Index climbing 1.4 per cent this week.

Brent crude rose 1.9 per cent to $33.74 a barrel at 4:02pm in Riyadh on Thursday, bringing its weekly gain to 4.8 per cent.

The Tadawul All Share Index added 3.2 per cent, while equity gauges in Qatar and Abu Dhabi climbed 3.3 and 2.2 per cent, respectively.

Shares in Oman, Bahrain and Kuwait also advanced.



Emerging Market

US and emerging-market stocks advanced as oil prices surged above $34 a barrel, after the Federal Reserve’s acknowledgment of global risks reassured investors that the pace of interest rate increases remains flexible.

The dollar weakened following a report showing US durable goods orders declined more than forecast.

The Standard & Poor’s 500 Index climbed 1 percent, kicking off the earnings season’s busiest reporting today. The Nasdaq 100 Index jumped after Facebook posted another record period.

Speculation that central banks will intervene to steady markets has helped shore up investor confidence. The Fed’s first statement since its December rate hike noted officials were “closely monitoring” developments from China to Europe for any adverse impact on the US economy.

Bloomberg