Dubai: The Dubai index snapped a two-day losing streak on Sunday, hitting its highest level in a week after Bank of Japan’s surprise expansion of its massive stimulus programme. The Abu Dhabi index also ended higher.

The Dubai Financial Market General Index ended 1.56 per cent higher to be at 4,616.12, after hitting a high of 4,670.89, a level last seen on October 26.

“We are in the risk down situation in the US as the mood is good, and we are benefiting from that in the region,” said Sebastien Henin, head of asset management, The National Investor, who manages $100 million worth of portfolio.

World stock indices rose on optimism the Bank of Japan’s stimulus will fill some of the gap left by the end of Federal Reserve bond buying. The Bank of Japan unexpectedly boosted its stimulus, raising its annual target for monetary expansion to 80 trillion yen ($717 billion), up from 60 to 70 trillion yen.

Arabtec, which was the most active stock in terms of value, ended 0.95 per cent higher at Dh4.27 per share. Emaar Properties ended 4 per cent higher at Dh10.40 per share.

In Dubai, out of a total of 34 shares traded on the exchange, shares of 18 companies rose, while 10 declined.

The Abu Dhabi index ended 1.36 per cent higher at 4,927.43. Out of a total of 28 companies on the ADX, shares of 16 companies rose and shares of 8 companies declined and the other 4 remained steady.

Green week:

“It should be a green week, markets should perform well,” said Henin, adding market should gain a few percentage points this week.

“Real estate might benefit as it’s a high beta sector,” said Henin, adding “Emaar might benefit as we have seen some positive news in terms dividend and new projects.”

The Dubai index has gained more than 40 per cent in the year so far, after witnessing a sell-off in the first-half of October due to a slide in crude oil.

“As long as crude oil prices above $80 per barrel then we will see no impact on market,” said Henin.

Brent fell 9.3 per cent this month, the biggest monthly decline since May 2012. US crude production climbed to the highest level in at least three decades last week. Traders are split on whether Saudi Arabia will deepen the crude price cuts that propelled oil into a bear market last month.

Brent for December settlement slid 38 cents, or 0.4 per cent, to $85.86 a barrel on the London-based ICE Futures Europe exchange. WTI for December delivery declined 58 cents, or 0.7 per cent, to $80.54 a barrel on the NYMEX.