Dubai: UAE stocks jumped more than 1 per cent on Sunday, buoyed by strong crude oil, with Damac Properties leading the gains in trade on the Dubai Financial Market (DFM).
The DFM General Index ended 1.53 per cent higher at 3,963.28, after hitting a high of 3,984.78, a level last seen in early January. Damac Properties ended 14.84 per cent higher at Dh2.94.
“With strong moves in crude oil prices on Friday, we saw a bounce back this morning,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Brent crude jumped more than 3 per cent for a second straight week on Friday after another drop in the US rig count.
DFM’s shares ended 4.90 per cent higher at Dh2.14, while Emaar Properties ended 4.55 per cent higher at Dh7.58.
“There wasn’t much in terms of surprise on Emaar Properties results. They were good results and we expect Emaar Properties to go up on Monday because some people thought of some bad news on Emaar. So it would be going much more at open,” said Manibhandu.
Emaar Properties recorded a 30 per cent rise in net operating profit for full-year 2014 to Dh3.350 billion. Emaar achieved revenues of Dh9.893 billion last year.
Outlook
“The markets should be trending up as we get closer to March, when most of the annual general meetings are due. People would slowly build positions if they want to get dividends,” said Manibhandu.
People would also eye the movement in crude prices. “So far crude has been going up, but equities have been going up much less. So there is room for equities to go up further,” said Manibhandu.
The Abu Dhabi Securities Exchange General Index ended 1.48 per cent higher at 4,695.34. Aldar Properties, which ended 5.02 per cent higher at Dh2.72, was the most active stock in terms of value. Eshraq Properties also ended 1.18 per cent higher at Dh0.86.
Saudi’s Tadawul All share (TASI) index ended 2.26 per cent higher at 9,467.06 led by petrochemicals.
Saudi Basic Industries Corp (SABIC), the largest stock on the bourse, rose 2 per cent at 97.09 Saudi Riyals, after it appointed a new acting chief executive on Sunday. Knowledge Economic City ended 9.97 per cent higher at 23.05 Saudi Riyals.
Qatar Exchange Index ended 0.68 per cent to be at 12,692.91, while Muscat Securities MSM 30 index ended 0.26 per cent higher at 6,675.20. Kuwait Stock Exchange Index ended 0.09 per cent lower at 6,689.94, while Bahrain Bourse All Share Index ended 0.44 per cent lower at 1,441.06.