Dubai Shares Climb Most in Two Months, Lifted by Oil; Egyptian Stocks Drop

Dubai shares advanced the most in more than two months, leading gains in Middle Eastern markets, as oil climbed to the highest year-end price since 2007. Egypt’s benchmark retreated after a bomb killed 21 people yesterday.

Dubai Investments PJSC, which owns stakes in more than 40 companies, soared the most since Sept. 19. Drake & Scull International PJSC, the Dubai-based engineering contractor, rose for a fifth day. The DFM General Index advanced 2.3 percent, the most since Oct. 28, to 1,668.27 at the 2 p.m. close in the emirate. The measure lost 9.6 percent in 2010. Abu Dhabi’s ADX General Index increased 0.8 percent and the Bloomberg GCC 200 Index of companies in the Persian Gulf climbed 0.4 percent.

“The continuous rise in oil prices” is pushing stocks higher, said Tariq Qaqish, director and fund manager at Al Mal Capital PSC in Dubai. Crude prices “will support the United Arab Emirates’ economy and that should trickle down to corporate earnings.”

Crude capped its second consecutive year of gains as the dollar dropped against the euro, boosting commodities’ appeal as an alternative investment. 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. Crude for February delivery advanced $1.54, or 1.7 percent, to settle at $91.38 a barrel on Dec. 31 on the New York Mercantile Exchange.

Nakheel Debt

Nakheel PJSC, the developer of palm-shaped islands off Dubai’s coast, paid 3.9 billion dirhams ($1.1 billion) to trade creditors as it seeks to renegotiate terms on at least $10.5 billion of loans and bills. Nakheel is working to secure the approval of 95 percent of its trade creditors by the end of the first quarter, the company said in an e-mailed statement shortly before the market closed today.

Dubai Investments jumped 6.8 percent to 83.3 fils. Drake & Scull rose 5.8 percent to 1.1 dirhams, the highest since October 2009. Emirates NBD, the U.A.E.’s biggest bank, advanced 8 percent to 2.98 dirhams.

Egypt’s benchmark EGX30 Index declined for the first time in five days, losing 0.8 percent to 7,082.40 at 2:30 p.m. close in Cairo. The gauge rose 15 percent in 2010.

Egyptian police rounded up 17 people after a bomb, possibly detonated by a foreign-backed suicide bomber, exploded outside a church in Alexandria, Al Jazeera television reported, citing unidentified security officials.

Church Bomb

The blast, which occurred shortly after midnight yesterday, killed 21 people and injured more than 90 people, according to the Health Ministry. President Hosni Mubarak blamed the attack on “foreign elements” and called for unity among Muslims and Christians.

“The impact of the Alexandria bombings is very minimal,” said Omar Darwish, an equity sales trader at Cairo-based Commercial International Brokerage Co. “We are seeing profit taking on low volumes after a very good year.”

In Israel, the TA-25 Index advanced less than 0.1 percent to 1,327.24 at the close in Tel Aviv. The yield on the 10-year Mimshal Shiklit bond maturing in January 2020 fell 3 basis points to 4.66 percent.

Africa-Israel Investments Ltd. gained 4.9 percent, the most since Nov. 28, to 23.80 shekels. The holding company controlled by billionaire Lev Leviev will pay off 1.5 billion shekels ($426 million) of debt after selling some of its assets.

Qatar’s gauge gained 0.7 percent and Oman’s MSM30 Index rose 0.8 percent. Saudi Arabia’s Tadawul All Share Index was little changed, advancing less than 0.1 percent. Markets in Kuwait and Bahrain were closed for a holiday.