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Sun 7 Mar 2010 07:08 PM

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Dubai shares rise most since Jan, lead Gulf gains on oil

Five of six GCC states to post fiscal surpluses in 2010, based on oil prices.

Dubai shares led gains in Gulf markets as oil rose to the highest level in almost two months and global markets advanced after smaller than expected US job losses boosted optimism for a global economic revival.

Emaar Properties PJSC, the developer of the world’s tallest skyscraper, advanced the most in two months as its Indian joint venture got approval for a share sale.

Dana Gas PJSC, a UAE based explorer and producer, gained in Abu Dhabi trading after making two discoveries.

The Dubai Financial Market General Index increased 2.3 percent, the most since Jan 25, to 1,621.73. Abu Dhabi’s gauge climbed 0.8 percent and Oman’s MSM30 Index rose 0.5 percent.

Ian Munro, head of research at MAC Capital Advisors in Dubai, said: “There is a strong correlation” between Gulf stocks and the price of oil, economic growth and corporate earnings in the region are derived from barrels of oil.”

The UAE holds 7.8 percent of the world’s proven oil reserves, according to BP Plc statistics on Bloomberg.

Five of the six Gulf Cooperation Council states will probably post fiscal surpluses this year, based on an oil price of $72 a barrel, even as they increase spending, Moody’s Investors Service said last month. Crude oil rose 1.6 percent to $81.50 a barrel on March 5 in New York.

Global stocks and the dollar rallied while US Treasuries fell March 5 after the Labor Department reported payrolls dropped 36,000 last month.

The total was forecast to fall by 68,000, according to economists surveyed by Bloomberg News.

Emaar climbed 6 percent, the most since Jan 3, to $0.86. India’s capital market regulator approved a plan by Emaar MGF Land Ltd. to sell shares in an initial public offering.

The company’s board will consider an “opportune time” for the sale, it said.

Dana Gas increased 3.7 percent, the most since Jan 5, to $0.22. The company made two natural gas discoveries in Egypt’s Nile Delta.

Saudi Arabia’s Tadawul All Share Index gained 0.3 percent.

Bahrain’s measure added 0.2 percent while the Kuwait Stock Exchange Index lost 0.3 percent.

Qatar’s bourse was closed for a holiday.

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