Arabian Gulf stocks rallied yesterday as turnover was buoyed by a boost to emerging market equities after better than expected export data from China.
The Dubai Financial Market General Index rose 0.6 per cent to 1,756.22 to hit a two-year high.
Meanwhile, the Abu Dhabi Securities Exchange General Index advanced 0.4 per cent to 2,728.27.
The Qatar Exchange rose 1 per cent to 8,781.7. Omani stocks also rose 0.3 per cent.
Volumes in Dubai sustained their highest levels in more than almost a year, giving some investors confidence that the momentum can be sustained ahead of earnings season.
Gains on international markets were helping sentiment, and lifting local equities in turn, with little signs of worry for at least the next few weeks, said Marwan Shurrab, the chief trader and assistant fund manager at Gulfmena Alternative Investments.
"What we're seeing now is a return of liquidity into the market," he said. "People are trying to benefit from the sentiment and … position themselves to benefit from dividend and fourth quarter announcements as they come."
In the capital, Aldar Properties and Sorouh Real Estate both rallied by 5.3 per cent, while Dana Gas rose by 6.1 per cent.
In Dubai, Islamic Arab Insurance Company, also known as Salama, and National Central Cooling Company, most commonly referred to as Tabreed, both rallied sharply. Mr Shurrab said the gains were mostly attributable to retail investor interest in the two stocks.
Oil prices rallied, with Brent crude futures rising $1.11 to $112.90 per barrel.
The Saudi Tadawul All-Share Index was closed for the weekend.
