[2008-03-05]  UAE shares rise on weak dollar and high oil price
A weak dollar has encouraged investors to buy shares in publicly listed companies, prompting UAE stocks to rise yesterday in addition to speculation that the whole Gulf region will benefit from oil above $100 a barrel.

“An oil price of more than $100 is calming investors,” said Ahmed Mitkees, a researcher at NBD Securities, in a Bloomberg report. “An increasingly weak dollar is encouraging people to put their money into stocks and assets.” The Dubai Financial Market (DFM) General Index rose 1.4 per cent to close at 5,857.34 while the Abu Dhabi Securities Market (ADSM) Index added 1.1 per cent at 4,822.30 points, increasing for the first time in five days.

Crude closed above $100 a barrel for the third consecutive day on Monday while the greenback fell for a sixth day against the yen and traded near a record-low against the euro. Oil and gas revenue contributed 37 per cent to the UAE’s gross domestic product in 2006, the Bloomberg report said.

Shuaa Capital, the Dubai-based investment bank covering the Gulf region, topped DFM with a jump of 5.2 per cent to Dh7.65 from Dh7.27 followed by Arabtec Holding, which increased 3.4 per cent to Dh12.30 and the largest courier in the Middle East, Aramex, which gained 2.3 per cent to Dh3.16.

Arab Insurance Group, which dropped 3.8 per cent to Dh3.75, and Al Firdous Holding, which slumped 0.4 per cent to Dh2.41, were the only losers on DFM.

Sorouh Real Estate Co rose 2.6 per cent to Dh10.20 after it formed a joint venture with Goodman Group, Australia’s biggest industrial real-estate investment trust. Sorouh, Abu Dhabi’s second-biggest developer, and Goodman will build business parks in the Gulf.

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