Dubai shares rise as oil price jumps

Liquidity is still tight, but the rebound is due to oil prices, according to Nabil Farhat, a partner at Al Fajer Securities in Abu Dhabi.

Dubai shares rallied yesterday after oil prices jumped 8 per cent on Friday, the strongest one-day surge in nearly three years.

The benchmark equity index advanced 4.5 per cent, the biggest move in six weeks, to 3,840.22 points. The Abu Dhabi Securities Exchange General Index rose 2.1 per cent to 4,552.61.

Dubai Financial Market Company, the listed shares of the stock exchange, rocketed 9.4 per cent to Dh2.08.

West Texas Intermediate on Friday jumped to $48.24 a barrel after Baker Hughes said that rig count in the US dropped by 94, leaving 1,223 rigs in service. The development raised concerns that another 300 rigs could be out of operation in the next few months.

“Liquidity is still tight, but the rebound is because of oil prices. It’s the first time they’ve closed up in weeks,” said Nabil Farhat, a partner at Al Fajer Securities in Abu Dhabi.

Property firms led the gains on the Abu Dhabi Securities Exchange.

Eshraq Properties jumped 5.3 per cent to 79 fils. Aldar Properties gained 5.4 per cent to Dh2.50. RAK Properties rose 5.5 per cent to 76 fils.

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