x Abu Dhabi, UAEMonday 24 July 2017

Useful lift for UAE bourses from oil price

Markets Update: The country's stock exchanges, Abu Dhabi Securities Exchange and Dubai Financial Market, were boosted amid higher oil prices.

Brent oil for January settlement climbed 2.1 per cent.
Brent oil for January settlement climbed 2.1 per cent.

Oil climbed to its highest in a week and local stocks followed suit despite sanctions on Syria triggering concern Middle East inventory may be threatened.

Emaar Properties, the region's biggest developer, jumped 3 per cent to Dh2.57 on the Dubai Financial Market (DFM) exchange. Gulf Navigation, the emirate's only publicly traded oil tanker owner, advanced 4.5 per cent to 23 fils a share. The DFM General Index climbed 1.2 per cent to 1,359.76.

Brent oil for January settlement climbed 2.1 per cent to US$108.59 a barrel on the ICE Futures Europe exchange, based in London. Syria produced an average of 332,000 barrels of crude a day in August, according to the International Energy Agency.

"Higher oil prices on the back of an ease of fears in Europe have triggered a technical rebound after 17 continuous negative trading sessions," said Wadah Taha, the chief investment officer at Al Zarooni Group in Dubai. "The gains are probably short-lived though, because it doesn't take into consideration the broader macroeconomic picture."

In Abu Dhabi, Aldar Properties the capital's biggest developer, added 1 per cent to Dh1. Sorouh Real Estate, the second-biggest, rose 1.1 per cent 92 fils. The Abu Dhabi Securities Exchange General Index rose 0.3 per cent to 2,424.28.

Elsewhere in the region: Qatar's QE Index added 0.3 per cent to 8,587.60; Saudi Arabia's Tadawul All-Share Index added 1.1 per cent to 6,118.64. Markets in Egypt, Oman, Bahrain and Kuwait were closed for an Islamic holiday.

halsayegh@thenational.ae

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