Shares in the UAE finished higher on Wednesday, feeding off positive sentiment in Europe and the US, as oil bounced back.
European equities gained for a third session in a row on Wednesday as Italian stocks continued to hold firm following the resignation on Monday of the prime minister, Matteo Renzi. The Euro Stoxx 50 Index was up by about 1 per cent in the late afternoon.
Futures markets pointed to a positive open for the S&P 500, which is trading close to an all-time high.
Brent crude futures later fell 0.7 per cent to US$53.57 a barrel in the late afternoon.
Renewed confidence in US and European markets saw foreign institutions piling heavily into big name UAE stocks, sending local indexes surging.
The Dubai Financial Market General Index gained 1.25 per cent at 3,495.73, thanks to a 2.4 per cent gain by bellwether Emaar Properties’ 2.4 per cent jump to a three-month high of Dh7.22.
“We are seeking strong institutional buying into major names in the UAE market, especially within banking and real estate,” said Hani Konquar, the team leader for Mena equity sales and trading at Mubasher Financial Services in Dubai.
“This is in line with the global market climb, which is boosted by a rally in financial shares.”
Banking shares led the way in Abu Dhabi, where the index finished up 1.8 per cent at a two-month high of 4,433.74.
FGB and NBAD rose by 5.4 per cent and 2.8 per cent respectively, ahead of general assembly meetings for both banks to vote on the merger.
jeverington@thenational.ae
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