Buoyed by oil, traders raise risky bets on UAE stocks

26/05/2016 05:16 AST

Buoyed by a strength in oil prices, UAE stock market investors raised their risky bets, with Dubai index jumping nearly 2 per cent, extending gains for another session.

The Dubai Financial Market General index closed 1.88 per cent higher at 3,308.77, after hitting a high of “Previous day performance in global markets aggressively helped sentiment in local markets. Buying in blue chips took the markets aggressively higher,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings. ”Markets have created a base, and investors took a chance to buy new positions.”

Oil rose towards $50 a barrel on Wednesday for the first time in seven months, driven by expectations that shrinking supply will help erode any overhang of unwanted crude.

In stock specific action, Arabtec ended more than 1 per cent higher at Dh1.45, while Emaar Properties ended nearly 4 per cent higher at Dh6.30. Drake and Scull ended more than 2.74 per cent higher at Dh0.562. Amlak ended 3.6 per cent higher at Dh1.44. Out of a total of 35 stocks traded on the exchange, shares of 24 firms rose, while other 5 fell.

“Most of the focus is on the Federal Reserve meeting next month, which should help fuel international markets and provide us with the support that we need to sustain this rally,” Shuraab said. The Dubai index has gained 5 per cent so far in the year, after losing 15 per cent in 2015.

In Abu Dhabi, on Wednesday, the general index closed 1.57 per cent higher at 4,288.61. Taqa ended more than 8 per cent higher at Dh0.61. Aldar Properties ended 3 per cent higher at Dh2.64.

Elsewhere in the Gulf, Saudi Arabia was 0.78 per cent higher at 6,525.65, while Qatar exchange index ended 0.42 per cent higher at 9,705.74. Muscat 30 MSM index closed 0.12 per cent lower at 5,930.51. Kuwait Stock Exchange index closed 0.86 per cent higher at 5,368.25. Bahrain bourse all share index closed 0.09 per cent lower at 1,099.63.

Gulfnews