Dubai shares gain most in two months on higher oil, Egypt drops

Blast in Alexandria takes toll on stocks, Dubai shares rise helped by rising crude prices
Dubai shares gain most in two months on higher oil, Egypt drops
Egypt’s benchmark EGX30 Index declined for the first time in five days as a bomb killed 21 people on Saturday
By Bloomberg
Sun 02 Jan 2011 03:41 PM

Dubai
shares advanced the most in more than two months, leading gains in Gulf
markets, as oil climbed to the highest year-end price since 2007. Egypt’s
benchmark retreated as a bomb killed 21 people yesterday.

Dubai
Investments, which owns stakes in more than 40 companies, soared the most since
Sept. 19. Drake & Scull International, the Dubai-based engineering
contractor, rose for a fifth day. The DFM General Index advanced 2.3 percent,
the most since Oct. 28, to 1,668.27 at the 2 pm close in the emirate. The
measure lost 9.6 percent in 2010. Abu Dhabi’s ADX General Index increased 0.8
percent and the Bloomberg GCC 200 Index of companies in the region climbed 0.3
percent.

“The
continuous rise in oil prices” is pushing stocks higher, said Tariq Qaqish,
director and fund manager at Al Mal Capital in Dubai. Crude prices “will
support the United Arab Emirates’ economy and that should trickle down to
corporate earnings”

Crude
capped its second consecutive year of gains as the dollar dropped against the
euro, boosting commodities’ appeal as an alternative investment. The six
nations of the Gulf Cooperation Council, including the UAE and Saudi Arabia,
supply about a fifth of the world’s oil. Oil for February delivery advanced
$1.54, or 1.7 percent, to settle at $91.38 a barrel on Dec. 31 on the New York
Mercantile Exchange.

Nakheel, the developer of palm-shaped islands off Dubai’s coast, paid 3.9 billion
dirhams ($1.1 billion) to trade creditors as it seeks to renegotiate terms on
at least $10.5 billion of loans and bills. Nakheel is working to secure the
approval of 95 percent of its trade creditors by the end of the first quarter,
the company said in an emailed statement shortly before the market closed
today.

Dubai
Investments jumped 6.8 percent to 83.3 fils. Drake & Scull rose 5.8 percent
to 1.1 dirhams, the highest since October 2009. Emirates NBD, the UAE’s biggest
bank, advanced 8 percent to 2.98 dirhams.

Egypt’s
benchmark EGX30 Index declined for the first time in five days, losing 0.5
percent to 7,103.61 at 12:51 p.m. in Cairo, the biggest drop since Dec. 22. The
gauge rose 15 percent in 2010.

Egyptian
police rounded up 17 people after a bomb, possibly detonated by a
foreign-backed suicide bomber, killed 21 people outside a church in Alexandria,
Al Jazeera television reported, citing unidentified security officials.

 “The impact of the Alexandria bombings is very
minimal,” said Omar Darwish, an equity sales trader at Cairo-based Commercial
International Brokerage Co. “We are seeing profit taking on low volumes after a
very good year.”

Qatar’s
gauge gained 0.7 percent and Oman’s MSM30 Index rose 0.8 percent. Saudi
Arabia’s Tadawul All Share Index advanced less than 0.1 percent. Kuwait’s and
Bahrain’s market are closed for a holiday.

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