Stock markets in the Gulf region were rallying in early trade on Sunday (30 August) on the back of stronger oil prices boosting the sentiment of investors.
The region’s shares had slumped when falling oil prices and China’s slowing economy growth sent waves across the world last week, triggering sell-offs.
Dubai’s main index climbed up 3.0 per cent in the opening minutes with stocks from the property sector trading the most. While developer Emaar Properties soared 4.8 per cent, Union Properties surged 4.5 per cent.
Shares in ports operator DP World shot up 3.8 per cent. Since the company announced its half-year results on Thursday its shares have jumped. It posted a 22 per cent rise in net profit in the first six months of 2015 to $405 million. The marine terminal operator’s announcement of its plans to open ports in Iran also received a huge welcome by the investors in the region.
Saudi Arabia’s Tadawul All Share Index index jumped 4.2 per cent at the opening bell. As the petrochemical sector index rose 5.7 per cent Saudi Basic Industries (SABIC) edged up 6.5 per cent. The country’s largest lender National Commercial Bank climbed surged 4.2 per cent.
Meanwhile, Abu Dhabi Security Exchange’s index climbed 1.7 per cent and Kuwait rose 0.6 per cent. While Oman was up 0.5 per cent, Egypt’s stock index edged up 0.6 percent in the early trade.
In addition to oil’s rebound late last week, property stocks may be supported by hopes that the US Federal Reserve will postpone an interest rate increase which analysts had previously expected in September. Most Gulf states keep their currencies pegged to the dollar and replicate the Fed’s interest rate adjustments, a Reuters report said.