Dubai stocks jump on plans to launch market-maker fund

Nov 2 (Reuters) – Dubai’s stock market jumped in early trade on Tuesday, outperforming other regional peers, as the emirate plans to launch a multi-billion dirham market-maker fund.

Dubai’s main share index (.DFMGI) advanced 3.1%, hitting its highest since Aug. 2018, as most of the stocks on the index were in positive territory, including Dubai Investments (DINV.DU) which soared 11.6%.

Dubai plans to launch a 2 billion dirham ($545 million) market-maker fund to boost trading on its stock market, state news agency WAM reported, citing the emirate’s deputy ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum. read more

He said a committee overseeing the stock market’s development approved a goal to double the financial market’s size to 3 trillion dirhams, adding that 10 state and state-related firms would be listed on Dubai Financial Market.

Sheikh Maktoum also announced the formation of a market supervisory committee and specialised courts for capital markets in Dubai.

Among other gainers, Dubai Financial Market (DFM.DU) surged 14.2%, its biggest intraday gain in about 18 months.

On the other hand, DAMAC Properties (DAMAC.DU) retreated 2.1%, on course to end two sessions of gains.

Dubai property tycoon Hussain Sajwani’s investment vehicle said on Monday he and “associated group members” now own 91.65% of DAMAC in a buyout of minority shareholders expected to be completed by the end of March. read more

Saudi Arabia’s benchmark index (.TASI) added 0.3%, with Al Rajhi Bank (1120.SE) rising 1% and Dr Sulaiman Al-Habib Medical Services (4013.SE) putting on 1.2%.

Oil prices rose as key producer group OPEC undershot its expected pace of output increases last month, while the world’s top oil consumer China ramped up operating rates to meet a spike in diesel demand.

In Abu Dhabi, the index (.ADI) edged 0.2% higher, helped by a 0.7% gain in the country’s largest lender First Abu Dhabi Bank (FAB.AD).

The Qatari index (.QSI) gained 0.4%, led by a 0.4%increase in Qatar National Bank (QNBK.QA).

($1 = 3.6726 UAE dirham)Reporting by Ateeq Shariff in Bengaluru

Our Standards: The Thomson Reuters Trust Principles.

This article was originally published by Reuters.