Rising oil prices stimulate Dubai, Abu Dhabi; Saudi stocks pause

An investor watches a screen displaying stock information at the Abu Dhabi Stock Exchange on June 25, 2014.

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April 21 (Reuters) – The Dubai and Abu Dhabi indices advanced on Thursday as oil prices rose on fears of supply problems, while investors took a break in Saudi Arabia after a strong rally until now this month.

Crude supply concerns persisted as the European Union (EU) considered a possible ban on Russian oil imports days after dwindling supplies from Libya rocked the market.

Dubai’s main stock market index (.DFMGI) rose for a third consecutive session, but pared its gains to end up 0.4%.

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Amlak Finance (AMLK.DU) was the top gainer for a second session, up 7.4%, a day after the company’s shareholders approved continued operations.

Emirates NBD (ENBD.DU) rose 1.4% after Dubai’s biggest lender posted an 18% jump in quarterly net profit. Read more

Outside the Gulf, Egypt’s blue chip index (.EGX30) rose nearly 1%.

“The Egyptian stock market remains exposed to current international issues, among them the war in Ukraine…the government has taken measures to mitigate the impact on the local economy and investors may influence the market after the sharp declines in this month,” Fadi said. Reyad, market analyst at CAPEX.com MENA.

The Egyptian pound fell to a five-year low of 18.59 to the dollar during the session but then recovered to close at 18.50.

Property developer SODIC (OCDI.CA) jumped 13.6% after posting a 102% rise in quarterly sales.

Saudi Arabia’s benchmark index (.TASI) fell 1%. The index is up nearly 4% so far this month, ending higher in 11 of 15 sessions.

Alkhorayef Water And Power Technologies (2081.SE) jumped 5.6% after the company signed a contract with the Ministry of Environment worth 1.86 billion riyals ($495.97 million ).

The Abu Dhabi index (.FTFADGI) rose 1.2% and posted its best day in more than two weeks.

The Qatari index (.QSI) rose slightly.

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Reporting by Tanvi Mehta in Bangalore; additional reporting by Ateeq Ur Shariff; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.


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Felix J. Dixon