Dubai stocks rose sharply on Wednesday as all real estate shares gained, while banks drove the Saudi market higher amid rising oil prices and after EFG Hermes forecast higher second quarter profit for Saudi lenders.
Oil prices rose more than 2% after industry data showed US inventories fell more than expected and as major US producers evacuated rigs in the Gulf of Mexico before a storm.
The Dubai index closed 1.2% higher with Emaar Properties, its largest listed-developer, surging 3.5% to its highest in two months.
Emaar Properties has been rising since Monday after its Egyptian subsidiary Emaar Misr Development initially agreed with El Nasr Housing and Development to settle a dispute on Uptown Cairo land.
The Saudi index added 0.6% with Al Rajhi Bank rising 0.7% and National Commercial Bank increasing 1.4%.
Investment bank EFG Hermes predicted 7.6% growth year-on-year in second quarter profit for the kingdom's financial sector.
The kingdom's largest food products company Savola Group moved 0.8% up. On Tuesday, the firm said it had raised 1 billion riyals ($266.65 million) in Islamic bonds. In Qatar, the index increased 0.5% with Qatar National Bank adding 1.7%. The Gulf's largest lender posted a 4% increase in first-half net profit after the market closed. Kuwait's index was up 0.6%, continuing its winning streak for the 10th straight session triggered by an MSCI decision that it would move Kuwaiti equities to its main emerging market index in 2020. Kuwait has outperformed its Gulf peers in anticipation of the MSCI move, gaining over 28% year-to-date. The Abu Dhabi index edged up 0.1%, led by a 1.2% rise in Abu Dhabi Commercial Bank, and a 2% increase in Aldar Properties.
The latter was awarded 5 billion dirhams ($1.36 billion) of development projects from the Abu Dhabi government.
Bank of Sharjah bounced back 5.5%, ending three straight sessions of losses set off after posting a steep fall in first-quarter profit. Egypt's blue-chip index declined 0.6% with Eastern Company dropping 2.3%, while Ezz Steel plunged 9.7% after earlier this week swinging into first quarter loss.
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