Oil, corporate news boost GCC stock markets

Stock markets in the Gulf Arab region surged on Sunday as oil prices further recovered, while listed firms reported mixed financial results.

According to Qatar National Bank (QNB), Brent crude oil prices gained 31 percent since hitting a near-six year low at 45 dollars a barrel in mid-January.

The increase helped Gulf Arab markets to gain ground further as the Dubai financial market (DFM) and the Saudi Tadawul bourse advanced earlier on Sunday by 1.54 percent and by 2.26 percent, respectively. The DFM market index reached a six-week high at 3,963.28 points.

In Dubai, the shares of the Middle East's biggest developer Emaar Properties jumped 4.55 percent to hit 2.05 U.S. dollars. Emaar reported a 28 percent rise in full-year net profits for 2014, amounting to 897 million dollars. Emaar chairman Mohammed Alabbar said 2014 was a robust year for the developer and that the growth was achieved across all business segments and at home and abroad alike.

Dubai-based contractor Drake and Scull International (DSI), on the other hand, lost 1.10 percent to 0.45 dollar. Earlier in the day, DSI said its net profit in the fourth quarter last year plummeted by 71 percent year on year, the Emirati daily The National reported.

In Riyadh, the shares of Saudi Basic Industries Corporation Sabic, the most valuable company in the oil-rich company, advanced by 0.95 percent in the day.

Stock markets in Kuwait and Abu Dhabi edged up by 0.60 percent and by 1.50 percent, respectively. Both sheikhdoms are like Saudi Arabia major oil suppliers.

Regarding the outlook for oil, Qatari lender QNB said in its report published earlier on Sunday it does not expect oil prices to recover further as the rebound since January was a "technical" market reaction. Endit