DUBAI: The Dubai index rebounded from its lowest level in three months on Monday led by Arabtec and Emaar Properties as investors resorted to bargain hunting post the previous day’s sell off. The Abu Dhabi index also ended higher.

The Dubai Financial Market (DFM) General Index ended 1.93 per cent higher at 4,078.70, after falling 7 per cent in the previous session. Emaar Properties rose 1.42 per cent to Dh10.75, while Arabtec rose 2.72 per cent to close at Dh4.16.

“It was due to bargain hunting. The recovery of positive sentiment in European markets and US futures helped regional sentiment across the board,” Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.

European stocks reversed early losses on Monday as airline shares gained after crude oil prices fell to near a four-year low, though broad dollar weakness and a jump in gold signalled investor concern over global economic health.

Equities worldwide have lost about $4.4 trillion (Dh16.2 trillion) in value since reaching a record last month. Minutes of the Federal Reserve’s September policy meeting last week showed officials are concerned the US economy may be at risk in a global slowdown. The Dubai Financial Market (DFM) General index has been the best performing in the Gulf region and the second best performer in the world, with 40.19 per cent gains mainly on the back of strong economic fundamentals and a solid recovery in the real estate market.

On the broader index, out of a total of 33 shares traded on the exchange, shares of 4 companies declined, shares of 27 rose, while shares of 2 companies remained unchanged.

In Abu Dhabi, the general index ended 0.96 per cent higher at 4,946.79. Arkan Building Materials rose more than 11 per cent in trade. Out of a total of 29 companies, shares of 14 companies rose, while 6 of them declined and the other 9 remained steady.

Crude oil eyed

“The major sentiment driver will be crude oil going forward as it impacts GCC budgets and spending and outlook of the economy,” said Shurrab “Markets will be see if there are any announcement from Opec on the supply of oil going forward.”

A combination of abundant supply and concerns about global demand has crushed crude oil prices in recent weeks.

Brent crude futures for November last traded at $88.14 per barrel, having touched $87.74 in Asian trade, its lowest since December 2010, although the Chinese trade data helped pare losses.

Opec is due to meet on November 27 to take a decision whether to cut supplies to stop the slide in oil prices.