Gulf markets gain after record Wall Street close

DUBAI: Gulf stock markets rose on Thursday, buoyed by rising oil prices and record closes on Wall Street, while strength in the UAE’s biggest bank boosted Abu Dhabi’s market in particular.

The Abu Dhabi index climbed 1.5 percent to its highest level since mid-August as First Abu Dhabi Bank surged 2.4 percent to 10.90 dirhams, bringing its gains in the last three days to 6.3 percent.

The stock rose on Wednesday above its 200-day average for the first time since September, triggering a minor double bottom formed by the lows since October. Of 10 analysts polled by Reuters, one has a “strong buy” on the stock, five have a “buy” and four have a “hold,” with a median target of 11.75 dirhams.

Dubai’s index edged up 0.1 percent to 3,464 points following four days of gains. Amlak Finance added 2.9 percent after saying it signed a memorandum of understanding with Egypt’s Marseilia Group to develop a property project in Cairo.

Dubai’s medium-term technical outlook turned positive this week as it began to rebound from the bottom of an uptrend channel dating back to early 2016. Technically, a rise in coming months to near the top of the channel would not be surprising, and would take the index above 3,700 points.

Saudi Arabia’s index rose 0.7 percent to its highest level since early October, passing resistance around 7,200 points, which was support in August and September. Any clean break — another daily close above that level on Sunday — would point up to at least the September peaks around 7,400 points.

Al Rajhi Bank added 1.6 percent after its 2 percent gain on Wednesday.

Egypt’s blue-chip index fell 0.4 percent. But Glaxo Egypt surged 7.0 percent after reporting a 26 percent year-on-year rise in thirdquarter consolidated net profit.