DUBAI: Rising oil prices helped push most Gulf markets higher yesterday with Dubai making the biggest gains as real estate stocks rallied further on a forecast the beleaguered sector could be bottoming out.
Saudi Basic Industries Corp. (SABIC) surged 5.2 percent to lift the Saudi index above a psychological 6,000-point barrier. Investors bet rising oil prices and a slumping US dollar would make SABIC more competitive against Western rivals.
Oil climbed to a seven-month high of above $68 a barrel, boosted by a weak dollar and expectations that an improving global economy would spur increasing oil consumption.
It was a strongly positive day for the Saudi market. Only two sectors closed with losses, namely the cement and insurance sectors, which were down 0.44 percent and 0.98 percent respectively. On the other hand, sector gains ranged from 0.01 percent in the agricultural sector, to 4.09 percent in Petrochemical.
“Today’s 1.86 percent rally is mainly due to an early indication of strong openings for the US market even after the GM filing for bankruptcy protection. SABIC’s gain of 5.15 percent is placing the stock at an area not seen since November 2008, a level that should be supported and justified once the second quarter earnings are out next month,” said the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary.
Doha’s benchmark rose 1.4 percent after Qatar’s government said it would buy banks’ property portfolios and agreed a $319 million settlement with Industries Qatar over steel prices. Industries Qatar climbed 1.5 percent, while Qatar Islamic Bank surged 6.5 percent.
Most analysts say the Saudi and Qatar markets are the strongest from a macroeconomic perspective, yet Dubai was the most-traded index for the second day running as it climbed 2.2 percent to 1,920 points — a fresh 24-week high.
Dubai’s index gained 7.1 percent so far this week after HSBC issued a report claiming UAE property prices were bottoming out following savage declines in the first quarter.
The Kuwaiti index KWSE gained 1.2 percent to 8,251 points, its highest close since Dec. 24 last year. Nearly 1.4 billion shares were traded, the highest volume for more than two years.
Abu Dhabi’s ADI index climbed 0.2 percent to 2,685 points, its fourth straight rise. Abu Dhabi Commercial Bank rose 5.3 percent.
In Oman, the benchmark MSI fell 0.1 percent to 5,500 points. In Bahrain, the measure BAX climbed 0.7 percent to 1,622 points.
Egypt’s benchmark EGX30 rose 2.7 percent to 6,089 points, its highest so far this year.
