Stock News: Dubai’s Rally Slows As Oil Slips

Gulf stock markets rose in early trade on Wednesday but Dubai, which had led gains in the previous session, slowed its advance as oil prices slipped.

Brent crude fell 0.7 per cent in Asian trade after surging almost six per cent on Tuesday when oil major BP and top Chinese offshore energy producer CNOOC said they would deepen capital investment cuts this year to adapt to lower oil prices.

Dubai’s index, which jumped 2.5 per cent on Tuesday, was up 1.1 per cent shortly after opening on Wednesday.

Property developer DAMAC once again surged its daily 15 per cent limit. The stock, which had previously traded only in London and cross-listed in Dubai on Jan. 12, had plunged 36 per cent last month on the emirate’s bourse. It started recovering this week after the firm’s subsidiary DAMAC Real Estate Development Ltd reported a 46 per cent surge in 2014 profit.

Dubai’s two most traded stocks on Wednesday, builder Arabtec and developer Emaar Properties, gained 1.3 and 2.6 per cent respectively.

Shuaa Capital tumbled 8.3 per cent after rating agency Moody’s on Tuesday withdrew its ratings, citing Moody’s “own business reasons”. It did not elaborate.

Bourses in Abu Dhabi and Qatar rose 1.2 per cent each. Qatar’s Ezdan Holding, which has interests in property and other sectors, surged 8.5 per cent ahead of an expected fourth-quarter earnings release.

Oman’s market edged up 0.8 per cent, while Kuwait slipped 0.1 per cent.