Emerging market stocks, including the Dubai Financial Market and the Abu Dhabi Securities Exchange, rose on Thursday after crude oil prices rallied and the US Federal Reserve confirmed delays to interest rate rises.
The DFM closed up 2 per cent, while the ADX rose 1.2 per cent.
For the week, the DFM index lost 2.6 per cent and the ADX index sagged 1.1 per cent.
The MSCI Emerging Markets Index rose 0.7 per cent on Thursday.
“There is a bounce-back in emerging markets after an awful start to the year,” Maarten-Jan Bakkum, who covers emerging markets at ING, told Bloomberg News.
“Yesterday’s Fed minutes confirmed that no early rate hike is coming,” he said.
“Brent above US$50 a barrel also helps sentiment. People are betting on a reversal of the negative underperformance trend.”
Twenty stocks on the ADX rose, with only four falling, while 21 stocks rose on the DFM, with three falling.
Arkan Building materials rose 14.9 per cent, with the Abu Dhabi National Company for Building Materials gaining 11 per cent.
Insurance companies also rose. Green Crescent Insurance gained 12.2 per cent and Methaq Takaful gained 8.7 per cent.
DFM, the company that operates the exchange, led gains in Dubai, closing up 6.0 per cent.
Dar Al Takaful gained 5.1 per cent, while Takaful Emarat gained 4.8 per cent.
The Tadawul index gained 1.8 per cent, but remained below its level of December 31, when King Abdullah was admitted to hospital, which led to a fall on the index.
The Qatar Exchange rose highest of all emerging market bourses, closing up 3.4 per cent
Brent futures were trading at $51.41 per barrel yesterday, slightly up from the previous day’s close of $51.15.
* With additional reporting by Bloomberg News
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