UAE stocks rose on Monday amid an advance in stocks globally, as investors took heart from a measure of German business confidence that fell less than expected.
Expectations that the US economy is strengthening have propelled equities around the world of late despite the gloom created by the United Kingdom’s vote last month to leave the European Union. The advance in equities in the UAE comes even as oil prices take a breather after having rallied from January’s multi-year low.
Dubai’s benchmark index, the DFMGI, gained 1.1 per cent while Abu Dhabi’s key gauge, the ADSMI, added 1 per cent.
Volumes on both exchanges were well below their 50-day averages.
The property developer Emaar and the mobile phone operator du led gains in Dubai, while the lender FGB and telecoms operator Etisalat paced the advance in Abu Dhabi.
The Stoxx Europe 600 Index rose for the first time in three days after the business sentiment reading signalled that Europe’s largest economy remained robust for now even after the Brexit vote. The Munich-based Ifo institute’s index fell less than forecast.
Elsewhere, gold extended its first back-to-back weekly drop since May as the US currency strengthened against most major counterparts. Turkish markets rallied the most worldwide after the prime minister said the government planned to set up a fund to support the economy after a failed coup.
The Stoxx 600 was up 0.4 per cent midafternoon in London, with trading volumes 45 per cent less than the 30-day average. The Borsa Istanbul 100 Index was up 3 per cent in afternoon trading.
* with additional reporting by Bloomberg
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