Dubai leads Gulf markets recovery as oil price firms

Dubai index closes more than 4% higher after plunging 11% over the three previous sessions
Dubai leads Gulf markets recovery as oil price firms
By Reuters
Tue 25 Aug 2015 02:19 PM

Gulf stock markets rose on Tuesday, led by Dubai, as firmer oil prices and stronger Asian bourses encouraged Gulf investors to buy shares back after heavy sell-offs in the past several days.

Dubai's index, which had plunged 11 percent over the three previous sessions, finished 4.6 percent higher though the trading volume was only moderate, suggesting many investors remained cautious.

Real estate shares in particular were bought back, with blue chip Emaar Properties up 3.4 percent and DAMAC Properties surging 7.7 percent.

Some speculative shares favoured by local retail investors soared; Amlak Finance jumped its daily 15 percent limit and builder Arabtec gained 9.8 percent.

Abu Dhabi's market rose 1.6 percent, buoyed by Aldar Properties' 7.0 percent gain.

Qatar's index was up 2.8 percent in a broad rally with the most heavily traded stock, Vodafone Qatar, climbing 4.2 percent.

Most fund managers are unwilling to say Gulf markets have bottomed, however, as long as oil prices haven't established a clear floor.

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