Dubai shares rose the most in a week amid optimism the United Arab Emirates may be upgraded to emerging-market status at MSCI Inc. (MSCI) this week and as European leaders agreed on measures to contain the region’s debt crisis.
Emaar Properties PJSC (EMAAR), the builder of the world’s tallest skyscraper in Dubai, climbed for a third day. Drake & Scull International (DSI) PJSC headed for the highest close since Nov. 13 after its Saudi Arabian unit won a contract. The benchmark DFM General Index (DFMGI) advanced 0.9 percent, the biggest gain since Dec. 4, to 1,396.97 at 11:25 a.m. in Dubai. The ADX General Index (ADSMI) in Abu Dhabi, the capital of the U.A.E., gained 0.7 percent. Saudi Arabia’s benchmark jumped yesterday to the highest since Aug. 3.
U.S. stocks rose last week, sending the Standard & Poor’s 500 Index to its first back-to-back weekly gain since October, after European leaders agreed to boost a rescue fund and reports spurred optimism about the U.S. economy. The European Central Bank lowered interest rates last week and said it may do more to stimulate bank lending and fight off a recession.
“A combination of effects are pushing U.A.E. markets higher this morning: positive sentiment regarding EU talks, solid performance from Saudi Arabia yesterday and some speculative buying ahead of the MSCI decision at the end of the week,” said Julian Bruce, Dubai-based equity sales head at EFG- Hermes Holding SAE.
MSCI Upgrade
MSCI plans to announce on Dec. 14 whether it will upgrade the U.A.E. and Qatar to emerging-market status from frontier. Essa Kazim, chief executive officer of Dubai Financial Market PJSC, the only publicly traded stock market in the six-nation Gulf Cooperation Council, said Dec. 4 he doesn’t see any difficulties to the U.A.E. getting the upgrade.
Crude oil for January delivery rose $1.07 to settle at $99.41 a barrel on the New York Mercantile Exchange on Dec. 9, the biggest gain since Nov. 29. The GCC, which includes the United Arab Emirates, is home to about one-fifth of the world’s proven oil reserves.
Emaar gained 2.2 percent to 2.83 dirhams. Drake & Scull added 1.2 percent to 84 fils. The Saudi unit’s contract has a value of 130 million riyals ($35 million).
The Bloomberg GCC 200 Index was little changed. Qatar’s QE Index (DSM) gained 0.1 percent and Oman’s measure climbed 0.5 percent. Kuwait’s benchmark fell 0.2 percent.
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