JEDDAH/DUBAI: Most Middle Eastern benchmarks fell yesterday as faltering global equities pushed regional investors to cash in recent gains.
The Qatar, Abu Dhabi, Oman and Bahrain indexes all suffered minor declines, together with Egypt, but Dubai’s index rebounded, together with Kuwait and Saudi Arabia. The latter clawed back early-session losses after US stock futures pointed to a higher opening on US markets — Asian equities fell earlier in the day — and oil prices rallied.
If US stocks advance overnight and oil holds steady, Middle East stocks should strengthen today, but the lack of local news flow may make trading volatile, analysts said. Dubai’s benchmark climbed 1.2 percent, its 10th rise in 11 sessions, as banking and property stocks — the two sectors hardest hit in the market downturn — made gains.
Trading volumes in Dubai fell by more than a third from the day before, as did those in Abu Dhabi, Qatar, Oman and Bahrain, with only Kuwait’s rising. Saudi trading declined 14 percent.
“The slowdown in volumes isn’t a negative — it shows investors aren’t panicking,” said Shahid Hameed of Global Investment House. “Buyers are coming in at lower levels, indicating that a lot of money is sitting on the sidelines.”
Oman’s index was the biggest loser among Gulf markets, dropping 1.4 percent to 5,666 points, while Egypt’s measure fell by the same margin.
In Saudi Arabia, the Tadawul All-Share index (TASI) edged up 0.1 percent to 5,882 points. Saudi Basic Industries Corp. (SABIC) rose 1.4 percent. Four sectors closed with gains, namely petrochemical, insurance, industrial and building, with gains of 1.45 percent, 1.03 percent, 0.47 percent and 0.26 percent respectively. Sector losses ranged from 0.22 percent in the transport sector to 1.03 percent in the telecom sector. Overall market breadth was positive, with 60 advancers and 55 decliners giving an AD ratio of 1.09, the Jeddah-based Financial Transaction House (FTH) said in its market report yesterday.
The Kuwaiti index climbed 0.5 percent to 8,228 points, ending a three-session losing streak. The index in Bahrain slipped 0.6 percent to 1,607 points, its fourth reverse in five sessions.
— With input from agencies