Dubai: The Dubai index extended its rebound on Sunday, becoming the best performer in the GCC region, buoyed by recovering crude.

Both crude and regional equity markets saw heavy losses last week.

The Dubai Financial Market General index rebounded as much as 10.9 per cent, before closing 9.88 per cent higher at 3,765.35. The index had gained a record 12.98 per cent on Thursday, after losing 8 per cent till Wednesday.

“Sentiment played a big role in the decline that we saw in the last week from the beginning of December, which had been over exaggerated. We have witnessed a V shape rebound due to the extent of losses that we had incurred,” Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings told Gulf News.

West Texas Intermediate (WTI) for January delivery rose $2.41 to settle at $56.52 (Dh207) a barrel on the New York Mercantile Exchange. The more active February future gained $2.77, or 5.1 per cent, to $57.13. Prices dropped 2.2 per cent this week, and are down 43 per cent this year. Brent for February settlement increased $2.11 to $61.38 a barrel on the London-based ICE Futures Europe exchange.

“Crude prices have been consolidating at $55-60 levels, and that level will play a big role in identifying the budget of GCC economies. And the impact on these budgets will directly affect the risky investments like equities,” Shurrab said.

Output target

Crude has slumped about a quarter since Saudi Arabia led a decision last month by the Organisation of Petroleum Exporting Countries to maintain its collective output target. US oil producers continue to pump at record levels, contributing to a global glut and competing with the 12-member group for market share.

Leading the gains were Emaar Properties and Arabtec, which jumped more than 13 per cent and 11 per cent respectively.

The Abu Dhabi Securities Exchange General Index also gained, ending the session at 4,516.65, up 3.47 per cent.

Elsewhere, Saudi’s Tadawul All Share index (Tasi) ended 2.46 per cent at 8,525.39 ahead of its budget on Monday. The Qatar Exchange Index ended 7.58 per cent higher. The Muscat Securities MSM 30 Index closed 5.52 per cent higher. The Kuwait Stock Exchange end 3.25 per cent higher.