DUBAI May 3 (Reuters) – Strong oil prices and positive
corporate news may help Dubai’s stock market rise above an
important technical barrier on Sunday, while Saudi Arabia’s
Middle East Paper Co may surge as it starts trading
after a public offer.

Brent crude hit a new 2015 high of $66.93 per barrel
on Thursday, when markets in the Gulf were already closed. It
eased slightly on Friday to settle at $66.46 per barrel.

Dubai’s index rose 0.3 percent to 4,229 points on
Thursday after struggling with major technical resistance at its
200-day average of 4,248 points. It may test that level again on
Sunday.

Bahrain’s Gulf Finance House (GFH), which was one
of the most traded stocks in Dubai last week, may gain after
announcing it would buy a shopping mall in the Saudi Arabian
city of Jeddah for 180 million riyals ($48 million).

Engineering firm Drake and Scull may also attract
buyers, having won a 290 million dirham contract to provide
mechanical, electrical and plumbing works for a mixed-use
property development in Dubai.

In Saudi Arabia, Middle East Paper Co will start trading on
Sunday after a heavily oversubscribed 450 million riyal initial
public offer. Saudi Arabian share offers are usually heavily
discounted, prompting stocks to surge afterwards. Because daily
price fluctuations are limited to 10 percent, trading the stock
may stop within minutes and resume only on Monday.

On global markets, U.S. shares rebounded sharply on Friday
on gains in healthcare and technology stocks, while most
European markets were closed for Labour Day. Bahrain’s bourse is
closed for the same holiday on Sunday.

(Reporting by Olzhas Auyezov; Editing by Andrew Torchia)

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