Gulf shares gain ground on global sentiment

Dubai: Gulf shares gained, tracking the global markets, on speculation government bailouts will shore up the global economy and attract investors into the region.

Arabtec Holding Co., the construction company building the world's tallest tower in Dubai, rose to the highest in almost three weeks after it offered one bonus share for each existing share. Emirates Telecommunications Corp., the UAE' s biggest telephone company, gained for a second day, while Oman Telecommunications Co. rose to the highest since November 11.

The Dubai Financial Market General Index gained 1.9 per cent to 1,964.66, advancing 8 per cent in the past four trading sessions. The Abu Dhabi Securities Exchange General Index advanced 2 per cent to 2,775.85, while the Kuwait Stock Exchange Index rose 1.7 per cent.

"We're seeing some shifts in sentiments globally," said Chamel Fahmy, senior regional sales trader at Beltone Securities Brokerage in Dubai. "Our markets are following that trend. I think there is still 200 points upside in the Dubai market."

The S&P 500 gained more than 12 per cent in the past week, its best weekly performance since 1974, after China cut interest rates and the Federal Reserve committed $800 billion to help resuscitate lending markets, boosting speculation government action will pull the global economy out of recession.

Nakheel effect

The Dubai index, which surged as much as 6.3 per cent, pared gains after the state-owned developer Nakheel PJSC cut its workforce by 15 per cent as the company scaled back some of its projects because of the global financial crisis. Nakheel is the developer of palm tree-shaped islands off the emirate's coast. The company in October announced plans to construct a kilometer-high tower in Dubai.

Oman's Muscat Securities Market 30 Index rose 2.3 per cent, while Qatar's DSM 20 Index increased 6 per cent. The Bahrain All Share Index added 1.2 per cent.

Arabtec gains

Arabtec surged 2 per cent to 4.55 dirhams, its highest since November 10. Arabtec's board approved plans to increase the Dubai-based company's capital to 1.2 billion dirhams from 598 million dirhams. Emirates Telecommunications, or etisalat, rose 0.8 per cent to 12.45 dirhams.

Oman Telecom, the biggest phone company in the Gulf country, gained 3.2 per cent to 1.731 rials after it said it was part of a group that qualified for the second stage of the mobile phone license bid process in Iran.