UAE equities experienced their best day in several weeks on Wednesday, on the back of a seven-month high in oil prices and rising US stocks.
West Texas Intermediate futures on Wednesday rose above US$49 per barrel for the first time since October, on a higher-than-expected drop in US crude inventories. Brent crude futures also approached their highest level for the year, trading around US$49.18 in the afternoon.
A 1.4 per cent overnight gain in the S&P 500 cheered Asian investors, with the Hang Seng and Nikkei closing 1.57 per cent and 1.23 per cent higher on Wednesday.
Such optimism proved a boon for UAE investors. The Dubai Financial Market recorded its best one-day performance in more than seven weeks, up 1.88 per cent at 3,308.77.
“It’s a continuation of what we’ve seen on international markets, with a strong close in the US on Tuesday with Asia following suit,” said Sebastien Henin, the head of asset management at The National Investor in Abu Dhabi. “Add to that the fact the recent sell-off on local markets, investors saw it as a good re-entry level to buy back in.”
This was most apparent with Dubai bellwether Emaar Properties. The developer’s shares broke a five-day losing streak to end 3.96 per cent higher at Dh6.30. The Abu Dhabi Securities Exchange General Index closed 1.57 per cent higher at 4,288.61, led by FGB and Aldar Properties.
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