Dubai: Dubai stocks ended over 1 per cent higher on Thursday, extending gains for a fourth straight session to hit its highest level in three weeks as crude oil, which hit above the $50 per barrel mark, fanned risk appetite.

The Dubai Financial Market General index closed 1.28 per cent higher at 3,351, after gaining 3.1 per cent in the previous three sessions.

“The fact that oil prices have been able to cross the psychological level of $50 per barrel, supported the market,” said Sebastien Henin, head of asset management at The National Investor.

Oil prices also extended gains for another session to hit the keenly watched $50 mark due to tumbling inventories in the United States. Brent is recovering after tumbling to a 12-year low in January that helped roil global financial markets and raise concern over the strength of the world economy.

In stock specific movements, Dubai Parks and Resorts ended more than 6.5 per cent higher at Dh1.43, and was the second most active stock on trade.

“Dubai Parks was up due to the success of the capital increase and investors decided to buy the name again,” said Henin.

Hits Telecom Holding ended 1 per cent higher at Dh0.482, making it the most active stock in trade. Volumes in Hits Telecom was at Dh160 million, almost 36 per cent than the total volumes traded.

Emaar Properties continued its gaining streak. Emaar Properties ended 1.11 per cent higher at Dh6.37. Out of a total of 36 stocks traded on the exchange, shares of 15 firms each rose and fell, the rest 6 others remained steady.

Trend:

“The trend would sustain only if we see follow through buying and strong momentum in global markets and oil prices, otherwise we could some profit-taking,” Henin said.

The Dubai index has gained more than 6 per cent so far in the year mainly supported by recovering oil prices, after the index lost 14 per cent in 2015.

In Abu Dhabi on Thursday, the general index closed a tad lower weighed by losses in property majors. The index closed 0.12 per cent lower at 4,283.49. Aldar Properties closed 0.38 per cent lower at Dh2.63. Rak Properties closed 1.89 per cent lower at Dh0.59.

Out of a total of 26 stocks traded on the exchange, shares of 11 firms rose, while other 10 fell.

Elsewhere in the Gulf, Saudi’s Tadawul witnessed muted to a sharp rise in oil prices. The Saudi’s Tadawul index closed 0.66 per cent lower at 6,480.92. “I’m expecting some weakness to persist in the market,” Henin said.

Qatar exchange index closed 0.11 per cent higher at 9,716.48. Muscat Securities MSM 30 index closed 0.27 per cent lower at 5,914.62. Kuwait Stock Exchange index closed 0.53 per cent higher at 5,396.67.