Dubai Financial Market rebounds as it takes cue from Asia stocks

UAE stocks rebounded on Monday, lifted by bullish sentiment across emerging markets even as oil fell.

Dubai Islamic Bank led the gains in Dubai while Etisalat lifted Abu Dhabi.

The Dubai Financial Market General Index rallied 2.5 per cent to 3,101.19 while the Abu Dhabi Securities Market General Index increased 0.9 per cent to 4,191.25. Markets across the Middle East tumbled on Sunday, after oil fell to a seven-year low on Friday.

“On a daily basis, stock markets in the region are no longer as correlated as they were with oil prices,” said Hussein Al Sayed, a Dubai-based chief market strategist for the Middle East and North Africa at IG, a securities brokerage firm in the UK. “The markets are following gains in emerging markets today following the rally in China.”

Chinese shares rallied on speculation the government will accelerate plans to make state-owned companies more efficient, Bloomberg reported.

The Shanghai Composite Index rose 1.8 per cent and stocks in Hong Kong extended their biggest weekly advance in two months after a media report highlighted plans by China’s power industry to bring in more investors next year and allow mixed ownership.

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