MIDEAST STOCKS-UAE, Qatar rise alongside oil prices, Drake & Scull bounces

PHOTO

DUBAI- United Arab Emirates (UAE) and Qatar stock markets closed higher on Wednesday as oil prices rose on uncertainty over the supply outlook.

Falling U.S. crude inventories and looming U.S. sanctions against Iran are a risk to supply in an already tight market despite OPEC pledges to raise output.

Property and financial shares led the Dubai index higher with developers Emaar Properties and DAMAC Properties rising 1.8 percent and 1.9 percent respectively. Dubai Islamic Bank gained 0.8 percent and Emirates NBD ended up 1 percent.

Contractor Drake & Scull International (DSI) bounced 3.3 percent after a 9.9 percent drop on Tuesday.

DSI, one of the weakest stocks in the Dubai index, fell after the outcome of an investigation into "violations" by previous management.

The Dubai index closed 0.8 percent higher.

Abu Dhabi National Energy Co jumped 4.6 percent and Dana Gas was up 1 percent on the back of higher oil prices. Financial shares also rose, with First Abu Dhabi Bank up 0.4 percent and Abu Dhabi Commercial Bank up 0.7 percent.

The Abu Dhabi index closed 0.5 percent higher.

In Qatar, telecom shares Vodafone Qatar and Ooredoo rose 2.1 percent and 1.7 percent respectively. Petrochemicals, metals, and fertiliser producer Industries Qatar was up 1.2 percent. The Qatar index ending the day 0.5 percent higher.

Savola Group, Saudi Arabia's largest food products company, lost 2.2 percent, and regional dairy company Almarai closed 1.5 percent lower.

The Saudi index ended 0.1 percent higher at 8,247 points.

SAUDI ARABIA

* The index rose 0.1 percent to 8,247 points.

DUBAI

* The index rose 0.8 percent to 2,861 points.

ABU DHABI

* The index rose by 0.5 percent to 4,594 points.

QATAR

* The index rose 0.5 percent to 9,231 points.

KUWAIT

* The index rose 2.6 percent to 5,132 points.