Rebound in oil, global equities lift Dubai Financial Market

A return of some risk appetite to global equity markets and a recovery in oil prices helped lift UAE bourses in early trade on Tuesday, while Qatar sagged after a sell-off in major blue chips.

Dubai’s index rose 1.7 per cent with Drake & Scull jumping 3.6 per cent. Emaar Properties and Damac Properties added 3.1 and 2.1 per cent respectively.

Over the past month Dubai’s benchmark has outperformed its regional peers, but a week ago it started to lose steam as most companies have already reported quarterly earnings.

“Traders may look to shift to the stable and less volatile stocks until the index breaks over the 3,075 level, the point where we expect the trend will turn bullish again,” said a note by Abu Dhabi’s NBAD Securities.

In Abu Dhabi, the index was up 0.5 per cent with blue-chip lenders Abu Dhabi Commercial Bank and Union National Bank each rising more than 2.0 per cent. RAK Properties rose 1.8 per cent after falling by the same magnitude on Monday.

Qatar’s benchmark fell 0.1 per cent after briefly trading up. Qatar National Bank and Ezdan Holding, which make up roughly 35 per cent of total market value, were the main drag. The lender and the real estate developer fell 1.5 and 0.7 per cent.

Aamal Co, a diversified conglomerate, nosedived 10.0 per cent. The company had reported on Monday a 9.7 per cent rise in net profit in 2015.

Shares in Kuwait Projects Co (KIPCO), which are usually thinly traded, added 1.9 per cent after the Gulf state’s largest investment company reported a 10.7 per cent rise in fourth-quarter net profit to 15.8 million dinars ($52.9 million). Kuwait’s main index was nearly flat.

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