Dubai's index ended 2.6 percent higher at 2,632 points, its highest since December 2018, led by Emaar Properties, Emaar Malls and Emaar Development , which have risen in recent sessions. The emirate's biggest listed developer surged 6.2 percent in its heaviest trading volume since Dec. 2017. Emaar Malls jumped 6.1 percent and Emaar Development rose 3.1 percent.
Other property stocks such as DAMAC Properties and Arabtec gained 4.8 percent and 5 percent respectively. The Dubai index fell more than 25 percent in 2018 to become the world's worst-performing major stock market in local currency terms, led by declining real estate stocks as Dubai property prices fell from their mid-2014 peak.
Nishit Lakhotia, head of research at SICO Bank, said the rises were possibly driven by short covering, especially on stocks that have dragged on the index such as Emaar Malls and DAMAC Properties. "We believe there is a certain level of risk appetite getting built into fund managers to buy the high beta names with strong yield but have been over sold," Lakhotia said, adding that the UAE market was the only one within the GCC offering high yield, value and also earnings growth.
Saudi Arabia's index was up 0.6 percent. Banks, which were hard hit in the last three sessions, led the gains with 10 of the market's 11 banks rising. Samba Financial Group added 3.2 percent and Riyad Bank gained 2.3 percent. The Qatari index rose 1 percent after a recent spate of selling. The Gulf's best stock market last year, Qatar shares are down 6.4 percent so far this month.
Qatar Islamic Bank was up 2.5 percent while heavyweight Industries Qatar climbed 1.6 percent. The Abu Dhabi index was also up 0.5 percent with Abu Dhabi Commercial Bank surging 5.9 percent. Egypt's blue-chip index gained 0.4 percent with Orascom Investment Holding closing 5 percent higher.
The stock has risen recently after its chairman, Egyptian billionaire businessman Naguib Sawiris, said he saw possible investment opportunities in North Korea if a summit between its leader Kim Jong Un and US President Donald Trump later this month was successful.