JEDDAH/DUBAI: Positive sentiment pushed most Gulf Arab markets higher on Sunday as investors bought stocks in anticipation of a sustained rally in the fourth quarter.
The Dubai and Qatar benchmarks made the biggest gains, rising 1.9 and 2.4 percent respectively, while Abu Dhabi and Oman each added just shy of 1 percent, with the latter claiming a fresh nine-month high as trading volumes rose on most markets.
The Dubai index closed at 1,922 points and Abu Dhabi index at 2,883 points. The Qatari index closed at 7,088 points. Kuwait and Saudi Arabia both declined, with banks the biggest drag. The Egypt index rose 0.6 percent to 6,745 points.
“Investors are more confident the market is now stabilizing and that is helping to bring cash back into the market,” said Samer Al-Jaouni, general manager of Middle East Financial Brokerage Co.
In Dubai, Shuaa Capital surged a near-maximum 14.6 percent after it appointed a new chief executive and said it would issue 515 million shares to Dubai Banking Group (DBG) to resolve a long-running bond row. “It settles the dispute between the two entities, but at the same time, people’s shareholdings have been diluted,” said Ayman El-Saheb, Darahem Financial Brokerage director of operations.
Emaar Properties hit a nine-week closing high, climbing 6 percent a day after Dubai Holding appointed a chief executive and chairman of its newly-created Property Vertical unit, merging Dubai Properties, Sama Dubai and Tatweer. This trio are then slated to merge with Emaar.
Qatar’s index made its largest one-day gain for more than two months as volumes hit a two-week high. “It’s a technical rebound,” said Al-Jaouni.
In Saudi Arabia, the Tadawul All-Share Index (TASI) fell 40.20 points to close at 5,699. The sector gains were seen only in 2 sectors — Retail and Media publishing with meager gains of 0.08 percent in both. However, losses were seen in the all the remaining 13 sectors with losses ranging from 0.28 percent by Telecommunication & Information Technology to 2.10 percent by Hotel & Tourism sector. Market breadth was negative with only 17 advancers against 104 decliners giving an AD ratio of 0.16, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary. “The market liquidity has been unable to grow from its current levels and on Sunday came in only at SR1.6 billion which is also an indicative sign of the lowered investor confidence levels,” the FTH report said. Kuwait’s index ended lower at 7,958 points for the first session in six, with Kuwait Finance House and Gulf Bank both falling more than 1.5 percent.
Zain climbed 2.7 percent to its highest close since Sept. 24 last year.
Institutional buying of bank stocks lifted Oman’s index to 6,314 points, with National Bank of Oman (NBO) climbing 2 percent.
— With input from agencies