UAE- Gulf Arab stocks climb

4/12/2016 9:03:57 AM

(MENAFN- Khaleej Times) ulf Arab stocks climbed after oil the region's main source of income rebounded to the highest level this year.

Dubai's DFM General Index led the advance rising 1.5 percent as of 12:41 p.m. local time to 3438.30 the highest level since November.The gauge has breached its50 percent Fibonacci levelwhich shows what percentage of a loss a security has recoveredfrom a low to a high a sign the rally may continue. The Bloomberg GCC 200 Index which tracks the biggest and most liquid stocks in the six-nation Gulf Cooperation Council increased 0.7 percent gaining for a third day.

Investor confidence in the region has been building after oil which funds the bulk of government spending recovered from the lowest in more than a decade. While countries including Saudi Arabia are seeking to diversify their economies away from crude growth remains largely driven by energy income. The kingdom which halted payments to contractors as it slashed spending amid oil's slump said it will pay almost all of its outstanding dues.

"The Saudi government's announcement that it's settling some debts to construction contractors should benefit Emirati companies operating in the kingdom" said Nabil Farhat an Abu Dhabi-based partner at Al Fajr Securities. That along with oil's bounce is driving the rally he said.

Dubai Contractors

Brent crude a benchmark for half the world's oil surged 6.4 percent on Friday to $41.94 per barrel as U.S. crude production slid for the 10th time in 11 weeks through April 1 according to data from the Energy Information Administration on Wednesday.

Dubai's gauge neared its 200-day moving average which it hasn't traded above since August. Drake & Scull International PJSC an engineering contractor rose 2.1 percent as 92 million shares traded about 20 percent of all volume on benchmark index. Union Properties PJSC climbed 2.5 percent on more than three-times the developer's six-month average intraday volume.

Emaar Properties PJSC the developer of Burj Khalifa the world's tallest tower added 1.8 percent. The company with the largest weighting on Dubai's main index said it would use a combination of debt and equity to fund an even taller observation tower in the Middle East business hub.

Israel Drops

Abu Dhabi's ADX General Index rose 0.6 percent. Kuwait's SE Price Index gained 0.1 percent and Oman's MSM 30 Index added0.6 percent climbing a seventh day. Qatar's QE Index fell 0.3 percent.

Saudi Arabia's Tadawul All Share Index increased the most in a week rising 1.2 percent led by Saudi Basic Industries Corp. Trading volume on the index was more than 20 percent below the 20-day intraday average.

Israel's TA-25 Index retreated 0.4 percent led by Perrigo Co.

To contact the reporter on this story: Samuel Potter in Dubai at . To contact the editors responsible for this story: Samuel Potter at Dana El Baltaji

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