The Dubai Financial Market surged 5.017 percent to close at 2,754.99 points on heavy trading, representing the biggest day-gain in months .
Last Friday, the United States benchmark for crude oil surged over nine percent to reach 32.12 dollar per barrel (159 liter), the largest advance since October.
Last Friday, Khalid al-Falih, chairman the world’s biggest oil and gas firm Saudi Aramco, said at the World Economic Forum in Davos the price of oil at its 12-year low it hit in early January was “irrational,” hinting at a possible more hawkish position by the world’s second producer of oil.
In addition, the United States government said last Wednesday the nation’s oil inventories grew by four million barrels last week, which was 15 percent less than the American Petroleum Institute estimated.
In Dubai, the shares of construction giant Arabtec soared 10 percent.
In a filing to the DFM, the company said as a leader a joint venture with TAV Construction, it has received a letter of intent from the ministry of transportation and telecommunication affairs in Bahrain for the main works of the Bahrain International Airport Modernization Program.
The project will be funded by the Abu Dhabi Fund For Development. The value of a possible contract was not disclosed.
Emaar Properties, the biggest developer in the region surged eight percent.
The DFM’s sister market ADX in Abu Dhabi climbed 2.73 percent to hit 3,839.05 points.
Regional markets benefitted from the lift in oil prices above 30 dollars per barrel, said Dubai-based economist Dr. Nasser Saidi.
Market sentiment also improved amid tailwinds from Europe. European indices recovered last week “especially after ECB President Draghi raised expectations of further liquidity injections and gave assurance that the banking sector in the Eurozone is solid,” said Saidi in his weekly analysis released earlier Sunday.
In Doha, the Qatar Exchange 20 Index advanced 4.63 percent to reach 8,981.61 points. Real estate companies in particular were demanded.
Market bellwether Industries Qatar finished the bullish Sunday 6.66 percent higher.
The Riyadh-based Saudi Stock Exchange index advanced 4.06 percent in late trading. Enditem