Dubai Financial Market jumps 6 per cent on the back of oil rally

UAE stocks surged on Sunday morning, with investors taking comfort from a 15 per cent rally in oil prices at the tail end of last week.

The Dubai Financial Market General Index experienced its best opening in over a year, opening up 6.6 per cent, with double digit gains by Emaar Malls and Arabtec Holding.

Abu Dhabi’s headline index opened up 4.7 per cent, led by FGB and Dana Gas, while shares in Qatar opened up 5 per cent.

The end of last week saw a record surge in oil prices, with both Brent and WTI marking their first positive week of 2016, as traders placed bets that current production levels are unsustainable in the short term.

The UAE’s energy minister Suhail Al Mazrouei, speaking at the World Economic Forum at Davos on Friday, predicted that oil prices would stabilise at “a fair price for the producers and consumers” by early 2017.

After hitting a new low of $27.88 on Wednesday, Brent crude futures surged by 15 per cent, closing out at the week at $32.18.

The commodity’s recovery prompted a rally across global stock markets, the S&P 500 and FTSE 100 posting their strongest gains of the year so far.

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