Dubai stocks gain most in Mideast as ECB spurs risk ap­petite

The Pak Banker - - MARKETS/SPORTS -

Dubai stocks ad­vanced the most among Middle East­ern eq­ui­ties as the Euro­pean Cen­tral Bank's mon­e­tary stim­u­lus boosted de­mand for emerg­ing-mar­ket as­sets, adding fuel to bullish sen­ti­ment in the emi­rate. The DFM Gen­eral In­dex climbed 1.4 per­cent to 3,401.03, ex­tend­ing four weeks of gains, the long­est streak since April. Emi­rates NBD PJSC, the emi­rate's big­gest len­der, added 4.6 per­cent to the high­est level in three months. Saudi Ara­bia's Tadawul All Share In­dex rose 0.6 per­cent at 1:06 p.m. in Riyadh.

"The ECB moves were taken well," said Saleem Khokhar, the head of fund man­age­ment and eq­ui­ties at the as­set man­age­ment group of Na­tional Bank of Abu Dhabi PJSC. "There's a pos­i­tive global back­drop in gen­eral and Dubai has been in risk-on mode for a while. We're ex­pect­ing this to con­tinue."

ECB Pres­i­dent Mario Draghi ex­ceeded in­vestors' ex­pec­ta­tions by cut­ting all three main in­ter­est rates and in­creas­ing monthly as­set pur­chases, spurring in­vestor de­mand for risky as­sets. Dubai stocks have been ral­ly­ing af­ter Brent crude prices climbed from the low­est level since 2003, lift­ing the emi­rate's equity in­dex into a bull mar­ket last month. Other stock gauges in the six-na­tion Gulf Co­op­er­a­tion Coun­cil, home to about 30 per­cent of the world's oil, fol­lowed.

About 566 mil­lion shares traded on Dubai's bench­mark, dou­ble the six-month av­er­age, ac­cord­ing to data com­piled by Bloomberg. The gauge's 14-day rel­a­tive strength in­dex was at 70, which to some tech­ni­cal an­a­lysts is a sign the mea­sure is over­bought and poised to de­cline.

Dubai Parks & Re­sorts PJSC, which is build­ing a se­ries of theme parks in the U.A.E., jumped 14 per­cent to the high­est since it listed in De­cem­ber 2014. About 148 mil­lion shares changed hands, or al­most 18 times the three-month daily av­er­age.

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