Shares in Dubai had their best trading day since late February, with retail investors returning to market on the back of stable oil prices and global equity gains.
Asian shares began the quarter in positive mood, with all major indices ending in positive territory. And the Euro Stoxx opened higher before shedding gains, with US futures markets pointing to a positive open.
Brent crude futures traded up by about 1.5 per cent at US$53.58 per barrel in the late afternoon on signs that global stockpiles are declining.
The Dubai Financial Market General Index closed up by 1.4 per cent at 3,539.33, its highest level in four weeks.
“There’s a lot of positive sentiment among retail investors, with an uptick in retail-friendly stocks such as Arabtec and Deyaar,” said Julian Bruce, EFG Hermes’ head of institutional trading in Dubai. “After a fairly inactive March people are taking a fresh look at the market and entering new positions.”
Arabtec Holding was up by 2.4 per cent yesterday, while Deyaar Development rose by 2.5 per cent.
In the capital, the Abu Dhabi Securities Exchange General Index gained 0.4 per cent at the close, to 4,466.64, thanks to gains by Etisalat and Aldar Properties.
Shares in Taqa surged for a second consecutive day, on speculation that the Abu Dhabi Government will step in to support the energy company following last week’s announcement of a Dh19 billion loss for 2016. The company’s shares rose by 9.6 per cent to 57 fils apiece yesterday, taking gains for the week so far to just under 24 per cent.
In Saudi Arabia, the Tadawul ended down 0.3 per cent, as bank stocks edged lower.
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