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Mon 29 Nov 2010 12:51 PM

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Dubai shares rise as Ireland bailout lifts confidence; oil gains

Dubai’s shares rose the most in more than a week, led gains in GCC markets

Dubai shares rise as Ireland bailout lifts confidence; oil gains
Kuwait’s gauge increased 0.7 percent. (Getty Images

Dubai shares
rose the most in more than a week, leading a gain in Gulf markets, after
Ireland received an 85 billion-euro ($113bn) aid package, easing concern
Europe’s financial crisis will spread. Oil also climbed.

Emaar Properties
PJSC, builder of the world’s tallest skyscraper, led the advance after chairman
Mohamed Alabbar said Dubai’s property market has reached bottom and is moving
toward recovery. Dubai Islamic Bank PJSC climbed 2.3 percent. Dubai’s DFM
General Index gained 0.9 percent, the most since November 21, to 1,674.77 at the 2
pm close in the emirate. The measure has dropped 5.1 percent in November. The
Bloomberg GCC 200 Index advanced 0.3 percent today.

“Attention is
focused on international markets with the goings-on in Europe and the Irish
bailout being finalized,” said Paul Cooper, managing director at Sarasin-Alpen
& Partners Ltd in Dubai, which oversees more than $500m in the
Middle East. “Still, it’s a nervous atmosphere with a lot of volatility. That’s
dissuading investors from making significant moves.”

Europe’s STOXX
Europe 600 increased as much as 0.8 percent after regional finance chiefs ended
crisis talks on Ireland yesterday by endorsing a Franco-German compromise on
post-2013 rescues that means investors won’t automatically take losses to share
the cost with taxpayers. The measure last traded 0.7 percent lower. The MSCI
Asia Pacific Index climbed 0.6 percent after three consecutive weeks of
declines.

Crude
oil for January delivery rose as much as 1.5 percent to $85.03 a barrel in
electronic trading on the New York Mercantile Exchange. The six Gulf Arab
nations, including Saudi Arabia and the United Arab Emirates, supply about a
fifth of the world’s oil.

The increase in
trading of $100 options shows some investors anticipate oil will rise at least
19 percent to levels last reached in 2008. The price of options to buy December
2011 futures at $100 a barrel jumped 14 percent on Nov. 24, the largest one-day
gain in three months, according to data compiled by Bloomberg.

Emaar advanced
1.4 percent, the most since Nov. 21, to AED3.65. Dubai’s real estate
prices slumped more than 50 percent from their peak in mid-2008. “It’s not as
good as it used to be, but we’re moving in that direction,” Alabbar said today.
Dubai Islamic Bank increased the most since October 28 to AED2.23.

The Tadawul All
Share Index rose 0.4 percent. Qatar’s QE Index rose 0.6 percent, Oman’s
benchmark stock index gained 0.3 percent and Bahrain’s All Share Index advanced
0.8 percent. Kuwait’s gauge increased 0.7 percent, while Abu Dhabi’s measure
fell 0.7 percent.

 

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