Dubai: Dubai index which rose nearly 1.5 per cent on Tuesday, extending gains for another session as oil, which hit its highest level in 2016, fanned risk appetite in select stocks. Qatar exchange index jumped more than 2 per cent, to lead regional gains.
The Dubai Financial Market General Index closed 1.46 per cent higher at 3,327.10, after rising as much as 3,328.02.
“Markets performed strongly because of similar sentiment in commodities market,” Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings, said. Oil prices rose past $51 per barrel mark, its highest in the past 10 months, supported by a weaker dollar.
In stock specific action, Emaar Properties ended more than 2 per cent higher at Dh6.34. Arabtec also gained 2 per cent to end at Dh1.40. Dubai Investments ended 1.5 per cent to be at Dh2.00.
Abu Dhabi Securities Exchange general index closed 0.75 per cent higher at 4,345.77. Eshraq Properties ended more than a per cent higher at Dh0.80.
Going ahead, “markets would trade sideways with low volumes. It would be a profitable for investors who are selective”, Shurrab said.
“Dubai Parks and Resorts stands out as an attractive investments. Most of the pressure that was put on the name was mainly due to rights issue. People now want to participate or interested in the stock,” Shurrab said.
Dubai Parks and Resorts ended 2.84 per cent higher at Dh1.45. The stock has doubled since December 2014 compared to a 8.6 per cent fall on the Dubai index, indicating aggressive performance of the stock.
“With the rights issue out of the way, and operations coming online in a couple of months, it has grabbed the attention of international investors,” Shurrab added.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index also rose following a rally in oil prices and details of the National Transformation Plan. The Tadawul index rose 0.87 per cent to end at 6,533.42. Muscat Securities MSM 30 index closed 0.46 per cent higher at 5,843.31.