Higher oil lifts Gulf

Dubai: Saudi Arabia’s stock index rose 1.1 per cent yesterday as investors accumulated shares in companies set to benefit from economic reform plans, while oil hitting fresh 2016 highs buoyed investor mood across the region. Bahrain stayed flat at 1,116 points.

Saudi Arabia’s Dar Al Arkan Real Estate Development Co jumped 9.2pc to 5.95 riyals, surging by its daily limit for a second straight day.

After the market close on Tuesday, the developer said it was in talks with the government to provide housing under the kingdom’s economic reform plan. Emaar Economic City also said it was in talks with the housing ministry to build homes for Saudi citizens, and its shares surged 8.6pc.

The Saudi government published a five-year National Transformation Plan (NTP) on Monday, part of a wider set of reforms launched in April as “Vision 2030”.

The plan, which sets targets for government agencies and also includes spending on new initiatives in healthcare, mining and renewable energy, will cost an estimated 270 billion riyals ($72bn) to implement. Finance Minister Ibrahim Alassaf said on Tuesday it will partly be paid for by making public sector efficiency savings and cutting spending on existing projects.

Dubai’s Shuaa Capital jumped 5.7pc after it confirmed hat Abu Dhabi Financial Group had reached an agreement to buy the 48.36pc stake of the investment bank held by Dubai Banking Group. The transaction, for which no value was disclosed, is subject to regulatory approvals, it said.

Dubai’s main index rose 0.8pc as winners outnumbered losers 18-to-four. Blue chips Emaar Properties and DAMAC Properties closed up 1.3 and 3pc respectively. Real estate and banking shares buoyed neighbouring Abu Dhabi’s index, which gained 1.4pc. First Gulf Bank and Aldar Properties each rose more than 2pc.

In Cairo, the main index added 0.8pc to 7,780 points, it highest close since April 27.

Palm Hills Development extended the previous session’s gains and added a further 2.3pc. The company said on Tuesday that shareholders had approved its plan to increase its share capital to 4.6 billion Egyptian pounds ($518 million) through an issue of bonus shares.

In other markets, Qatar index added 0.6pc to 9,919 points, while Kuwait edged up 0.2pc to 5,406 points. Oman rose 0.8pc 5,888 points.