Exchanges rally after a quiet weekend in Saudi

Shares listed in Dubai and Abu Dhabi soared yesterday after protests in Saudi Arabia failed to escalate over the weekend.

The developer was the top gainer yesterday.

The country's stock exchanges rallied to their highest in almost three weeks yesterday after protests in Saudi Arabia failed to eventuate over the weekend.

The Dubai Financial Market General Index rose 4.3 per cent to 1,512.59 points, the highest since February 21. Traded value on the Dubai bourse reached Dh326.6 million, more than double the 50-day average of Dh136.3m.

The possibility of protests in Saudi Arabia "kept a lot of fund managers on the sidelines waiting for something to happen, and then nothing did happen", said Saleem Khokhar, a fund manager at National Bank of Abu Dhabi. "So the positive sentiment from Saudi Arabia is now carrying over into our markets."

Emaar Properties was the top gainer, climbing 10 per cent to Dh2.95. Arabtec Holding rallied 7.3 per cent to close at Dh1.47.

Also boosting regional sentiment was a pledge from GCC countries late last week to contribute Dh20 billion to Oman and Bahrain over the next decade to help bolster their economies and alleviate tensions.

The Abu Dhabi Securities Exchange General Index gained 1.4 per cent to 2,655.63 points. Traded value reached Dh157.9m, also above the 50-day average of Dh109.3m.

Elsewhere in the region: Qatar's index rose 2.7 per cent to 8,457.12; Oman's bourse added 1.2 per cent to 6,416.44; Kuwait's measure gained 1.7 per cent to 6,396.40; and the Saudi Tadawul All-Share Index was trading 0.2 per cent higher at 6,309.63.