Dubai: The Dubai index rose the most regionally on Sunday led by Emaar Properties ahead of the board approval for dividend. The Abu Dhabi index also ended a tad higher.

The Dubai Financial Market General Index ended 1.46 per cent higher at 4,630.13, recovering from previous week’s losses. The Saudi’s Tadawul All Share TASI Index gained 1.02 per cent, making it the second best performer in the region.

“It was a good session today. Market was driven by international news flow. We had some positive news from the US and Europe on Friday. We also had a small rebound on oil prices,” said Sebastien Henin, head of asset management at The National Investor.

US stocks gained for a fifth week, with benchmark indexes reaching all-time highs, on signs the US economy is improving and central banks from China to Europe are taking additional stimulus measures.

Energy and raw-material stocks advanced as oil climbed for the first time in eight weeks. On Friday, West Texas Intermediate and brent crudes increased after China, the world’s second-largest oil-consuming country, cut interest rates to bolster its economy.

On the broader Dubai index, out of a total of 31 shares traded on the exchange, shares of 6 companies declined, while shares of 22 companies rose.

In Abu Dhabi, the ADX general index ended 0.12 per cent higher at 4,963.93. Out of a total of 33 companies, shares of 16 companies rose, while 10 of them declined and the other 7 remained steady.

Good week

“We should have a good week due to MSCI re-rating (of select stocks) and good investor appetite for the IPO,” said Henin.

Dubai Parks and Resorts said on Thursday its qualified institutional tranche of the Dh2.5 billion Initial Public Offering has been oversubscribed, within four days from the start of the IPO, pointing to robust investor appetite.

“with increased weight of the selected stocks, we should expect some flows in Emaar Properties and Dubai Islamic Bank this week,” said Henin.

MSCI, whose gauges are tracked by investors managing about $9 trillion in assets, included the UAE and Qatar in its emerging markets index in June. The company said in April it would cut the weighting of some stocks by a factor of 0.5 because of ownership restrictions.

In its latest review, MSCI said it will remove the adjustment for stocks including Emaar Properties, Dubai Islamic Bank PJSC in Dubai, Qatar National Bank SAQ, and Industries Qatar QSC in Qatar from November 25.

Emaar Properties, which was the most active stock in value in trade on Sunday, ended 3.67 per cent higher at Dh11.30. The Emaar’s board will meet on November 24 to approve of Dh9 billion dividend its for shareholders. “It’s a meaningful dividend for shareholders and they would react positively,” said Henin.