Aug. 1 (Bloomberg) -- Dubai’s shares rose to a two-week high after U.S. President Barack Obama said congressional leaders struck a deal to raise the nation’s debt ceiling. The emirate’s default risk tumbled.
Emaar Properties PJSC, developer of the world’s tallest skyscraper, gained 2.8 percent and Drake & Scull International PJSC, the United Arab Emirates construction company, rose the most in almost a month. The DFM General Index climbed 0.6 percent to 1,526.34, the highest since July 18, at the 2 p.m. close in Dubai. The Bloomberg GCC 200 Index increased 0.8 percent and Abu Dhabi’s ADX General Index rose 0.7 percent. The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset, started today.
“U.A.E. markets are struggling to replicate relief rallies evident elsewhere,” said Julian Bruce, equity sales head at EFG-Hermes Holding SAE in Dubai. There is “a modicum of interest being shown by mainly domestic buyers, but the first day of Ramadan automatically ushers in an additional uptick in investor apathy, irrespective of news.”
Emerging market stocks rose after Obama announced that leaders of both parties in the U.S. House and Senate had reached a tentative bipartisan agreement to raise the debt ceiling, preparing to sell the deal to skeptical Republicans and Democrats ahead of a possible default on Aug. 2. The MSCI Asia Pacific Index increased 1.6 percent and the MSCI Emerging Markets Index advanced 1.5 percent at 9:30 a.m. in New York.
About 69 million shares traded in Dubai today, compared with a 12-month daily average of 122 million shares, according to data compiled by Bloomberg.
Dubai’s default risk, or credit default swaps, retreated 16 basis points, or 0.16 percentage point, to 317, the lowest level since June 7, according to CMA. The data provider is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.
Crude oil for September delivery rose as much as 3 percent to $98.6 in electronic trading on the New York Mercantile Exchange. The six nations of the Gulf Cooperation Council, including the U.A.E. and Saudi Arabia, supply about a fifth of the world’s oil.
Emaar advanced the most since July 3 to 2.96 dirhams and Drake & Scull climbed 1.9 percent to 95.5 fils.
Qatar’s QE Index and Kuwait’s gauge increased 0.1 percent. Saudi Arabia’s Tadawul All Share Index climbed 1.3 percent and Oman’s MSM 30 Index advanced 0.4 percent. Bahrain’s BB All Share Index slipped 0.1 percent
--With assistance from Alaa Shahine in Dubai. Editors: Claudia Maedler, Shaji Mathew
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