Dubai: The Dubai index along other regional indices jumped more than 1 per cent on Wednesday following a rally in crude oil prices, but cautious analysts were wary if the rally could sustain.

The Dubai Financial Market General Index closed 1.42 per cent to 3,711.74, after hitting a high of 3,725.97, a level last seen in late August.

“The rally has been a continuation of strong sentiment that we saw in international markets with investors trading the high beta stocks,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.

Damac Properties closed 4.33 per cent higher at Dh3.13, while Emaar Properties closed 1.32 per cent higher at Dh6.89. Amlak Finance closed 2.99 per cent higher at Dh2.07. Arabtec also ended 1.05 per cent higher at Dh1.93.

Out of a total of 35 stocks traded on the exchange, shares of 32 stocks rose.

The rally was mainly triggered by a continuing rally in oil prices. Oil prices rose after data showed the market was beginning to tighten, with falling supply, higher demand and lower inventories after two years of heavy surplus.

Brent rose $1.07 (Dh3.92) a barrel on Wednesday, or more than 2 per cent, to a high of $52.99 on Wednesday before easing to $52.90. It jumped as much as $3 on Tuesday to close above $50 for the first time in a month.

“If we see stability in oil prices and see global growth, we may see stability coming to our markets, and investors would be more confident to invest,” said Shurrab.

Cautious approach

“I don’t know if this rally would be sustainable, one would have to view the results,” said Mohammad Shabbir, head of equity funds and portfolios at Rasmala Investment Bank, “so as far there are no surprises in results, we might see this rally sustain.”

Abu Dhabi Securities Exchange General Index closed 0.75 per cent higher at 4,588.76.

Dana Gas closed nearly 2 per cent higher to Dh0.54, while Aldar Properties closed more than 2.87 per cent higher at Dh2.51.

Out of 30 stocks traded on the exchange, 15 rose, while four stocks fell.

In Saudi Arabia, the Tadawul index closed 1.88 per cent higher at 7,602.56.

Banque Saudi Fransi rose 3.33 per cent after posting a 10.2 per cent rise in third-quarter net profit. Riyadh Bank was flat after announcing a 16.5 per cent fall in profit.

Elsewhere in the Gulf, Qatar Exchange index closed 0.88 per cent higher at 11,788.71, while Muscat Securities MSM 30 index closed 0.49 per cent higher at 5,806.47.