Dubai stocks at 14-week high
Published: Sep 9, 2010 00:36 Updated: Sep 9, 2010 00:36
JEDDAH/DUBAI: Dubai blue chips reverse early losses to end higher, helping the emirate’s index reach a new 14-week high as investors shrug off a Dubai Holding unit delaying payment on a $555 million loan for a second time.
Emaar Properties climbs 1.9 percent, Arabtec adds 2.2 percent and Dubai Financial Market gains 3.8 percent. The latter derives the majority of its revenues from market trading commissions, so with volumes now on the rise, the stock is expected to outperform.
“A lot of people who took positions over the past few days seem happy to hold, so day traders may be changing their time scale, which would be good for the market,” says Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
UAE markets have been so volatile since the financial crisis struck in late 2008 that most medium to long-term investors have fled, leaving trading in the control of short-term speculators.
The Tadawul All-Share Index consisted of only 3 trading sessions on account of Eid holidays. However, the week had a positive closing and witnessed 2 positive trading sessions on Saturday and Monday. On a week to date basis, TASI made a consolidated gain of 2.39 percent. The liquidity for the week came in at SR 5.65 billion (for 3 days) as compared to SR6.1 billion of last week, the Financial Transaction House said.
On a week-to-week basis, the sector activity was positively biased with all 15 sectors closing with gains ranging from 0.02 percent by the Retail sector to 5.67 percent by Industrial Investment sector.
The top gainers for the week were Gulf General Cooperative Insurance Co. with a gain of 12.18 percent to close at SR40.50 and Trade Union Cooperative Insurance Co. with a gain of 10.90 percent to close for the week at SR23.40. The top losers for the week on the other hand were Gulf Union Cooperative Insurance Co. with a loss of -4.85 percent to close at SR19.65 and Abdullah Al-Othaim Markets Co. losing -2.42 percent to close at SR70.75.
Industries Qatar is among losers as Doha’s index ends lower for a second day, but stocks remain cheap compared to international markets and little further downside is expected, an analyst says.
Industries Qatar falls 0.8 percent, declining for a second day since Sunday’s 16-week high. Masraf Al-Rayan drops 2.6 percent and Barwa Real Estate loses 0.6 percent.
The index falls 0.2 percent to 7,423 points.
Kuwait’s benchmark rises 0.4 percent to 6,753 points, a 14-week high. Zain is the main support, rising 1.6 percent.
Local Institutions buy into select bank stocks, helping Oman’s index end slightly higher, while retail investors are largely absent as they preserve cash to subscribe to the initial public offering of telecoms operator Nawras.
National Bank of Oman climbs 0.9 percent, but Bank Sohar falls by the same margin.
Oman’s index climbs 0.2 percent to 6,292 points, its fifth straight gain.
— WIth input from agencies
