Dubai markets rose the most in three months, as investor appetite for riskier assets increased after?Greece?passed an austerity package to avoid default.
Emaar Properties PJSC (EMAAR), developer of the world?s tallest skyscraper in Dubai, jumped 3.6 percent and?Emirates NBD PJSC (EMIRATES), the United Arab Emirates? biggest bank by assets, advanced to the highest in almost two weeks.
Dubai?s?DFM General Index (DFMGI)?rose 2.4 percent, the most since March 20, to 1,553.31 at the 2 p.m. close in the emirate. Abu Dhabi?s ADX General Index climbed 0.2 percent and the?Bloomberg GCC 200 Index added 0.3 percent. Israel?s measure surged 2.4 percent in Tel Aviv.
?The marginal regional investor, providers of incremental liquidity, have for many months now looked at global markets for cues, so the strong global close last week certainly helped,? said Sachin Mohindra, a?fund manager?at Invest AD in?Abu Dhabi.
?High net worth regional investors will continue to take cues from global markets in the next few months.?
U.S. stocks posted the biggest weekly rally since July 2009. The Standard & Poor?s 500 Index soared 5.6 percent last week, while the?Dow Jones Industrial Average?advanced 5.4 percent. The MSCI Emerging Markets Index rallied 3.7 percent.
A decline of 4.7 percent this year has left the 31 companies on Dubai?s benchmark index valued at about 8.5 times estimated earnings, data compiled by Bloomberg show. That compares with 11.1 times for the MSCI Emerging Markets Index.
Emaar rose the most since May 10 to 3.13 dirhams and Emirates NBD increased 2.4 percent to 4.25 dirhams, the highest level since June 20.
Tamweel PJSC, the home finance company majority owned by?Dubai Islamic Bank PJSC, rallied 3.4 percent to 88 fils. The stock was included in the DFM General Index and the banking sub-index.
Qatar?s?QE Index advanced 1.4 percent, Oman?s?MSM30 Index?gained 0.3 percent and Saudi Arabia?s Tadawul All Share Index added 0.1 percent. Kuwait?s SE Price Index retreated 0.6 percent and Bahrain?s gauge slipped 0.2 percent.
In North Africa,?Egypt?s EGX 30 Index (EGX30)?advanced 0.9 percent.
In Israel, the TA-25 Index rallied the most since May 10 to 1,252.91. The yield on the 5 percent Mimshal Shiklit government bonds due January 2020 gained three basis points, or 0.03 percentage point, to 5.19 percent.
European and American markets rose after the Greek Prime Minister George Papandreou won a parliamentary majority in favor of a five-year austerity plan in a vote last week.
This positive vote opened the way for Greece to access to international funding to avoid default.
With the second vote also passed, Greece can now receive the latest 12 billin-euro tranche of a 110 billion loan, instead of defaulting.
Sources: Bloomberg, Reuters, English.cri.in