x Abu Dhabi, UAESunday 23 July 2017

Markets rise on aid pledge to Bahrain and Oman

Markets Update:Investors welcome Dh10 billion package to Oman and Bahrain in an effort to curb tensions, as markets rise.

The UAE's benchmark indices rose at the open after Gulf states pledged to provide Oman and Bahrain with $10 billion each over a decade to help ease tensions.

The Dubai Financial Market General Index rose 2.2 per cent to 1482.24 at 10am. Property stocks helped to lift the emirate's measure higher, led by Emaar Properties, the developer of the Burj Khalifa, which gained 5.2 per cent to Dh2.82 a share.

"The funds allocated to support Bahrain and Oman have been positively interpreted by the investors in the region, and suddenly any scenarios for any escalation of unrest in both countries have become subdued," said Wadah al Taha, the chief investment officer at al Zarooni Group in Dubai.

Dubai Islamic Bank gained 1.4 per cent to Dh2.16, even after the lender reported a net income of Dh806 million for last year. The bank reported a profit of Dh1.2 billion the year earlier.

In Abu Dhabi, Aldar Properties gained 3.8 per cent to Dh1.35. RAK Properties added 2.8 per cent to 36 fils, while Sorouh Real Estate added 1.8 per cent to 61 fils. The Abu Dhabi Securities Exchange General Index rose 0.8 per cent higher to 2639.82.

Regional indices also gained at the open. Oman's benchmark added 1.5 per cent to 6434.01. Kuwait's measure rose 0.9 per cent to 6346.10. Bahrain's index added 0.1 per cent to 1410.98. Qatar's index gained 0.7 per cent to 8228.87.