UAE stocks in positive as oil prices rise

UAE stock markets closed higher yesterday as oil prices rose on uncertainty over the supply outlook. Falling US crude inventories and looming US sanctions against Iran are a risk to supply in an already tight market despite Opec pledges to raise output.

Property and financial shares led the Dubai index higher with developers Emaar Properties and Damac Properties rising 1.8 per cent and 1.9 per cent, respectively. Dubai Islamic Bank gained 0.8 per cent and Emirates NBD ended up 1 per cent.

Contractor Drake & Scull International bounced 3.3 per cent after a 9.9 per cent drop on Tuesday. DSI, one of the weakest stocks in the Dubai index, fell after the outcome of an investigation into “violations” by previous management.

The Dubai index closed 0.8 per cent higher to 2,861 points.

Abu Dhabi National Energy Company (Taqa) jumped 4.6 per cent and Dana Gas was up 1 per cent on the back of higher oil prices. Financial shares also rose, with First Abu Dhabi Bank up 0.4 per cent and Abu Dhabi Commercial Bank up 0.7 per cent. The Abu Dhabi index closed 0.5 per cent higher to 4,594 points.

Savola Group, Saudi Arabia’s largest food products company, lost 2.2 per cent, and regional dairy company Almarai closed 1.5 per cent lower.

The Saudi index ended 0.1 percent higher at 8,247 points.

The Kuwait index rose 2.6 per cent to 5,132 points, with Bahrain’s up 0.9 per cent to 1,322 points. In Egypt the index fell 0.7 per cent at 16,310 points.

Brent oil extended gains on Wednesday, near session highs above $78 a barrel after an Iranian Revolutionary Guards commander said he was ready to prevent regional crude exports if Iranian oil sales were banned by the United States.

Brent crude futures were up 29 cents at $78.05 a barrel by 11.21am GMT, while US crude futures were down 34 cents at $73.80 a barrel, paring gains after rallying by as much as 1.2 per cent on Tuesday.

Saudi Aramco said yesterday it was rebalancing its Asia crude oil benchmark. Aramco’s price marker was the average of Platts Dubai and Platts Oman assessments. The new formula will replace Platts Oman with Dubai Mercantile Exchange Oman as of October 1, the company said.