Dubai - Blooberg
Dubai’s shares rallied to the highest level in more than a year after US consumer confidence beat expectations and oil rose from a one-week low, boosting optimism in global economic growth. Arabtec Holding Co., the United Arab Emirates’ biggest construction company, jumped to the highest since October 2008. Dubai Financial Market surged 7.1 percent as volumes in the emirate soared. The DFM General Index advanced 1.9 per cent to 1,730.43, the highest since November 2010, at the 2 pm close in the emirate. It rallied 21 percent this month, the biggest monthly gain since October 2007. The Bloomberg GCC 200 Index of Gulf stocks rose for a 13th day, gaining 0.6 per cent at 1:26 pm in Riyadh. “Once the fear globally dissipated, investors started to pay attention to the positive local news out there, and there is a lot,” including valuations and infrastructure spending, said Saad al-Chalabi, an institutional trader at Al Ramz Securities in Abu Dhabi. “The breadth of this rally globally gives us confidence that local gains are sustainable for the medium and long term.” Dubai’s shares have rallied 28 percent so far this year after improved earnings and dividends boosted investor confidence. The 31 stocks in the benchmark are valued at an average 0.78 times net assets. That compares with 1.75 times for emerging market stocks. Abu Dhabi’s shares have also advanced after the government said in January it plans to resume real-estate projects after reviewing their viability. Abu Dhabi’s ADX General Index increased 0.7 percent, rising for a ninth day in its longest stretch of gains since April 18. The Standard & Poor’s 500 Index yesterday climbed 0.3 per cent. The Conference Board’s index of consumer confidence increased in February to the highest level in a year, figures from the New York-based research group showed yesterday. The MSCI Emerging Markets Index rallied 1.2 per cent. Oil for April delivery gained as much as 0.8 per cent to $107.43 a barrel on the New York Mercantile Exchange. Gulf Arab oil exporters, including Qatar and the UAE, supply about a fifth of the world’s oil. Arabtec advanced 3.7 per cent to 3.63 dirhams. Dubai Financial Market, the only publicly traded Gulf Arab stock market, climbed to Dhs1.07, the highest since Oct. 2. Volumes in the emirate have picked up this month, reaching 784 million shares today, the highest since December 2009 and compared with the 12-month daily average of 123 million shares. Oman’s MSM 30 Index rose 0.5 per cent. Qatar’s QE Index increased 0.6 per cent and Kuwait’s Stock Exchange Price Index climbed 0.2 per cent. Saudi Arabia’s Tadawul All Share Index and and Bahrain’s BB All Share Index advanced 0.7 per cent. From gulftoday