Abu Dhabi shares extend gains

Markets Update: Markets pull apart in early trading, with large cap stocks in the capital buoying Abu Dhabi in spite of thin volumes on both markets.

Traders began the week with a certain degree of Christmas cheer, extending last week's late rally and lifting markets from recent lows.

Abu Dhabi's market extended gains seen on Thursday, which followed an eight-day losing streak on the capital's index. The Abu Dhabi Securities Exchange General Index gained 0.4 per cent to 2,360.72.

But investors in Dubai felt none of the same spirit of merriment, with the Dubai Financial Market General Index falling 0.2 per cent to 1,336.17.

Volumes were thin on both markets with many investors headed home for the holiday season, leaving most stocks unchanged.

Etisalat and Sorouh led gains in the capital, followed by a rise in Aldar Properties' stocks following an announcement that the company had no plans to delist, scotching recent market speculation.

"Aldar's board is fully committed to maintaining the company's listing," the company said in a statement to the Abu Dhabi Securities Exchange.

Aldar's shares gained 3.6 per cent to 86 fils.

The gains in Abu Dhabi followed a 0.8 per cent bounce in the Saudi Tadawul All Share Index yesterday, which boosted the kingdom's index to 6,384.08.

Elsewhere in the Gulf, all other bourses rose except Bahrain.

Oil prices rose on Friday, as the US Congress prepared to vote on an extension of payroll tax cuts. Brent futures gained 39 cents to $109.25 a barrel in trading before the bill passed.