Mideast Stocks: Most Gulf bourses rise as oil prices gain on tight supply

Dubai's main share index added 0.2%


Most stock markets in the Gulf rose on Thursday as oil prices gained on growing fuel demand and a bigger-than-expected draw in U.S. crude inventories, although the Abu Dhabi index bucked the trend to trade lower.

The oil market was also supported by a return of appetite for risk assets as concerns eased over a potential default by property developer China Evergrande and its possible fallout on the world's second-largest economy. 

Dubai's main share index added 0.2%, extending gains from the previous session, with blue-chip developer Emaar Properties rising 0.7% while DAMAC Properties advanced 2.4%.

The founder of DAMAC Properties is relaunching a partial offer to take the firm private after the securities regulator of the United Arab Emirates granted approval, according to a statement on Thursday. 

The offer came amid years of downturn in Dubai's property market, exacerbated by the economic fallout from the pandemic.

The United Arab Emirates' Securities and Commodities Authority has signed an agreement with the Dubai World Trade Centre Authority (DWTCA) aimed at supporting the trading of crypto assets in DWTCA's free zone, state news agency (WAM) reported on Wednesday. 

In Abu Dhabi, the index eased 0.1% following a 0.7% drop in the country's largest lender First Abu Dhabi Bank.

Global investors have been on tenterhooks in recent weeks as debt payment obligations of China Evergrande, labouring under a $305 billion mountain of debt, triggered fears its malaise could pose systemic risks to the world's second-largest economy.

Elsewhere, the Qatari index gained 0.4%, with petrochemical maker Industries Qatar rising over 1%.

** Saudi markets are closed for a public holiday

(Reporting by Ateeq Shariff in Bengaluru, Editing by Sherry Jacob-Phillips) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))

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