07 Jun 2009
June 7 (Bloomberg) -- Dubai share rose for a ninth day, the longest winning streak since April 2005, as oil near $70 a barrel and U.S. economic data boosted investor confidence.Shuaa Capital PSC rose after the country's biggest investment bank extended the deadline for reaching an agreement with Dubai Banking Group on convertible bonds. Emaar Properties PJSC advanced for the ninth day, its longest rally since 2004. Abu Dhabi Commercial Bank, the country's third-biggest bank by assets, climbed to a December high.
"Oil went above 70 dollars, hallelujah, that is about 100 percent above the lows," said Mohammed Galal, head of institutional sales and trading for Futtaim HC Securities. "Dubai has been lagging behind. With this seemingly better environment it is just now catching up."
The Dubai Financial Market General Index rose 2.4 percent to 2,073.29, bringing the nine-day rally to 21 percent. The Abu Dhabi General Index climbed 1.8 percent. Dubai's gauge has soared 32 percent this quarter, while Qatar's Doha Securities Market index is up 51 percent.
Crude oil closed at $68.44 a barrel on June 5 after climbing to $70.32 earlier that day. Oil reached its 2009 low of $32.70 a barrel on Jan. 20. Last week, the U.S. Labor Department said the world's largest economy lost fewer jobs than forecast in May, reinforcing signs that the deepest recession in half a century is starting to abate.
Shuaa increased 1.2 percent to 1.69 dirhams. The company extended the deadline to June 15 for converting bonds it issued to Dubai Banking Group or agreeing on a new conversion price.
Kuwait's Decline
Emaar, the U.A.E.'s largest property developer, added 1.3 percent to 3.98 dirhams. Abu Dhabi Commercial Bank added 1.9 percent to 2.16 dirhams, the highest close since Dec. 17.
The Kuwait Stock Exchange Index dropped 2.1 percent, led lower by banks. The Kuwait Banking Sector Index lost 3.1 percent, the worst performance among the nine sub-indexes in Kuwait's benchmark.
Al-Rai reported Kuwaiti banks are owned more than $75 million by the Saad Group, owned by Saudi billionaire Maan al- Sanea, and Ahmad Hamad Al-Gosaibi & Brothers Co.
Saudi Arabia's Tadawul All Share Index retreated 0.8 percent to 5,935.04 at 1:27 p.m. in Riyadh. Oman's Muscat Securities Market 30 Index fell 0.2 percent and the Bahrain All Share Index lost 0.3 percent. Qatar's Doha Securities Market Index added 0.9 percent.
