Shares in the Arabian Gulf surged on Monday as oil rose for the second day in a row and a falling dollar whet investor appetite for emerging market stocks.
Brent crude futures rose as high as US$49.37 after Saudi Arabia’s deputy crown prince Mohammed bin Salman said that Saudi Arabia and Russia had agreed to work together to bring stability to oil markets, with an output freeze reportedly discussed. Brent futures were trading at about $47.39 per barrel on Monday afternoon.
The US dollar fell on Monday after disappointing US payroll data dampened expectations of a US interest rate rise in the coming month. Emerging markets reacted brightly, with the FTSE Emerging Index up about 1.1 per cent in afternoon trading.
Shares across the Arabian Gulf were among those that benefited, with Bloomberg’s GCC 200 Index closing up 0.8 per cent.
Saudi stocks led gains across the region for a second consecutive day. The Tadawul closed up 1.7 per cent, the index’s biggest one-day gain in more than four months, led by Sabic, Samba and NCB.
The Dubai Financial Market General Index closed up 0.3 per cent at 3,546.23. Shuaa Capital and Union Properties dominated trading on the index, rising by 14.9 per cent and 4 per cent, respectively, with just six stocks finishing lower.
Shares in the capital had their best day in nearly six weeks, closing up 0.8 per cent at 4,512.01. NBAD and FGB were among the best big-name performers, rising 2.7 per cent and 2.1 per cent, respectively, while Etisalat gained 0.5 per cent.
The Qatar Exchange ended down 0.1 per cent, dragged lower by Industries Qatar and QNB.
jeverington@thenational.ae
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