UAE shares up on hopes of Greek bailout deal

Stocks in the United Arab Emirates climbed on bets Greece may secure a bailout deal and after equities in China rebounded.

The DFM General Index climbed 0.7 per cent to 4,046.74, on course for the highest close since July 6, late Sunday morning. Dubai Islamic Bank, the nation’s largest Sharia-compliant lender, was the biggest contributor with a 1.5 per cent jump. Abu Dhabi’s benchmark ADX General Index added 0.8 per cent, the most this month.

“We’re seeing some positive momentum in our local markets on optimism of a solution to Greece’s current debt problems and after Chinese stocks bounced back,” Muhammad Shabbir, the head of equities at Rasmala Investment Bank, said. “Anything that impacts growth in Europe, will affect the global economy, which has a direct impact on the regional oil exports.”

The UAE is home to almost 6 per cent of the world’s proven oil reserves.

The Greek government offered to meet most of the demands made by creditors in exchange for a third rescue, spurring a 1.4 per cent increase in The Stoxx Europe 600 for the week. In China, the UAE’s second-biggest trading partner, the Shanghai Stock Exchange Composite Index jumped 11 per cent in two sessions, the most in almost seven years, after the government banned insiders from selling stocks.

The Standard & Poor’s 500 Index increased 1.2 per cent Friday to wipe out a weekly decline.

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