Stock markets across the Arabian Gulf enjoyed their highest gains in more than a year this past week, as a rise in oil prices enticed investors back into equities.
Dubai’s headline index finished the week up 8.9 per cent at 2,857.24, the most since December 2014. Shares in Abu Dhabi rose 4.6 per cent, their best weekly performance in more than 18 months.
However, market watchers were keen to stress that both bourses remain 9 per cent lower since the start of the year. “The rally this week was triggered mainly by positive sentiments on higher oil prices, [however], nothing has changed fundamentally though, to significantly alter demand-supply position,” said Vijay Harpalani, a fund manager with Al Mal Capital.
“The uncertain macroeconomic outlook and the ongoing repricing of risk do not support a sustainable market-wide rally.”
Brent crude futures rose close to US$34 a barrel, after Russian officials floated the idea of talks with Saudi Arabia and other Opec countries regarding the possibility of cuts in production.
Eshraq Properties soared 13.6 4 per cent in Abu Dhabi following the resignation of its chairman, managing director and two other board members.