Oman, Abu Dhabi Shares Rally as Oil Gains; China Signals Yuan Flexibility - Bloomberg

Oman and Abu Dhabi shares advanced, helping lead Gulf Arab markets higher, after China signaled it will relax the yuan’s peg to the dollar, boosting confidence in the global economic recovery. Oil rose to a six-week high.

Oman Cables Industry SAOG surged to the highest intraday level since June 3 after the company was raised to “overweight” at Taib Bank. National Bank of Abu Dhabi, the United Arab Emirates’ second-biggest lender, gained 4.3 percent. Oman’s benchmark gauge jumped 2 percent, the most in more than six months, to 6,257.8 as of 1:22 p.m. in Muscat. Abu Dhabi’s ADX General Index climbed 0.9 percent to 2,559.81, the highest level in two weeks. The Bloomberg GCC 200 Index gained for a third day, rising 1.8 percent.

“Positive movements in global markets have a direct impact on local markets,” said Ziad Dabbas, a financial analyst at the National Bank of Abu Dhabi. “The U.A.E. markets are oversold and prices appear attractive.”