Stock markets in United Arab Emirates rebounded on Friday as fears of a global banking crisis subsided after U.S. authorities and banks came to the rescue of First Republic Bank.
Major U.S. banks injected $30 billion to save First Republic Bank, which was caught up in a widening crisis triggered by the collapse of two other mid-size U.S. lenders over the past week.
Crude prices - a key contributor to Gulf economies – surged more than 1% on Friday on expectation of strong demand growth in top importer, China with Brent gaining $1.04, or 1.39%, to $75.74 a barrel by 1008 GMT.
In Abu Dhabi, the index surged 2.2%, its highest intraday gain since mid-October, as International Holding Company, the most valued listed firm in UAE, jumped 3.8%, while IHC-owned investment firm Multiply Group climbed 6.4%.
Among winner, UAE’s largest lender First Abu Dhabi Bank gained 2.5% and largest utilities firm Abu Dhabi National Energy Company drifted 5.8% higher.
Eshraq Investment rose 3.7% after the firm announced the sale of 58 residential apartments in Burj Daman for 162 million dirhams ($44.11 million)
According to Fadi Reyad, the Abu Dhabi stock market rebounded on easing concerns of banking crisis, but could remain under pressure from low energy prices.
Dubai’s main market index settled 1.3%, lifted by strong gains in the heavyweight real estate and banking sectors with most stocks trading in positive territory.
Among gainers, toll operator Salik Company gained 2.9% and state-controlled utility firm Dubai Electricity And Water Authority increased 2.1%
Blue-chip developer Emaar Properties and its construction unit Emaar Development hiked 1.9% and 3.8% respectively after both firms declared a full-year cash dividend of 25 fils and 52 fils per share respectively.
Improvement in sentiment globally led to rebound in the Dubai stock market with the financial sector on the upside for the most part, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.
Abu Dhabi and Dubai markets posted weekly losses of 1.8% and 1.1% respectively.
=================================== ABU DHABI jumped 2.2% to 9,650 DUBAI rose 1.3% to 3,349 ===================================