Dubai stocks advanced the most among Middle Eastern equities as the European Central Bankâ€™s monetary stimulus boosted demand for emerging-market assets, adding fuel to bullish sentiment in the emirate.
The DFM General Index climbed 1.4 percent to 3,401.03, extending four weeks of gains, the longest streak since April. Emirates NBD PJSC, the emirateâ€™s biggest lender, added 4.6 percent to the highest level in three months. Saudi Arabiaâ€™s Tadawul All Share Index rose 0.2 percent.
â€œThe ECB moves were taken well,â€ said Saleem Khokhar, the head of fund management and equities at the asset management group of National Bank of Abu Dhabi PJSC. â€œThereâ€™s a positive global backdrop in general and Dubai has been in risk-on mode for a while. Weâ€™re expecting this to continue.â€
ECB President Mario Draghi exceeded investorsâ€™ expectations by cutting all three main interest rates and increasing monthly asset purchases, spurring investor demand for risky assets. Dubai stocks have been rallying after Brent crude prices climbed from the lowest level since 2003, lifting the emirateâ€™s equity index into a bull market last month. Other stock gauges in the six-nation GCC, home to about 30% of the worldâ€™s oil,