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DFM rebounds as crude gains

DUBAI — Gulf stocks on Wednesday rose with Dubai’s gauge climbing the most in two weeks as oil and global markets gained on speculation this month’s slump may be overdone. Egypt’s main index surged after entering a “bear market” on Tuesday.

Emaar Properties PJSC, the developer of the world’s tallest skyscraper, climbed the most since May 17 and Arabtec Holding PJSC had the biggest gain in more than two weeks. The DFM General Index advanced 1.3 per cent, the most since May 10, to 1,590.97 points.

Emaar climbed 1.5 per cent to Dh3.35. Arabtec, the United Arab Emirates’ largest construction company, gained 1.4 per cent to Dh2.12.

“The jump is driven purely by the rebound in international markets, raising investor confidence for short-term trading,” said Marwan Shurrab, assistant fund manager and chief trader at Gulfmena Alternative Investments in Dubai.

Egypt’s EGX 30 Index surged 4.4 per cent. The measure yesterday extended its decline from the April peak to more than 20 per cent, the threshold for a bear market.

Telecom Egypt, the largest fixed-line telephone company in the Middle East, jumped 4.1 per cent to E£17.1, the highest since May 13. Morgan Stanley raised its share-price estimate to E£16.7 from E£15.4.

Emerging-market stocks rallied the most in two weeks on speculation valuations are attractive given prospects for accelerating economic growth. Crude oil, down about 18 per cent this month, rose 2.8 per cent to $70.64 a barrel in Dubai as a decline in US gasoline inventories restored confidence in the economic recovery.

The Bloomberg GCC 200 Index of 200 companies in the Gulf rose 1.1 per cent.

The benchmark stock index in Saudi Arabia, holder of 21 per cent of the world’s proven oil reserves, rallied 1.8 per cent. Qatar’s QE Index rose 0.7 per cent, Bahrain’s gauge gained 1.2 per cent, and Kuwait Stock Exchange Index advanced less than 0.1 per cent. Abu Dhabi’s measure lost 0.1 per cent and Oman’s MSM30 Index dropped one per cent.