ARAB NEWS
JEDDAH/DUBAI: Gulf markets advanced in brisker trade on Tuesday, although gains were modest as wary investors await full-year results.
Kuwait was the standout performer, rising 1.2 percent in its largest gain for more than two weeks, Saudi Arabia advanced for a fourth day as telecoms rallied and Oman hit a fresh 10-week closing high.
In Abu Dhabi, volumes more than tripled from the previous day, helping the UAE capital’s index reach a three-week closing high as investors switched cash from Dubai and its heavyweight listing Emaar Properties.
“The appetite for Emaar is slowing down and there is a shift toward Abu Dhabi especially Aldar and Sorouh, which have been lagging the market for the past couple of weeks,” said Chamel Fahmy, Beltone Financial regional senior sales trader. “We’re seeing some foreign investors coming in but this isn’t long-term money.”
Aldar Properties and Sorouh Real Estate rose 3.4 and 3.7 percent respectively.
Dana Gas climbed 5.3 percent after the firm said its Egypt subsidiary boosted production.
Dubai’s index climbed 0.1 percent, with Emaar ending flat after giving up initial gains as investors soon discounted Monday’s opening of Emaar-built Burj Khalifa, formerly known as Burj Dubai, the world’s tallest structure.
“People need to look at the bigger picture and its full-year earnings to see how well it is diversifying from the Dubai real estate sector,” said Matthew Wakeman, EFG-Hermes’ managing director for cash and equity-linked trading.
Saudi Telecom Co. and Etihad Etisalat (Mobily) were the most significant gainers in Saudi Arabia, rising 2 and 2.9 percent respectively.
“Mobily has been doing quite nicely over the past week or so — it had fallen to the low SR40s for no real reason apart from maybe the fallout from Dubai’s debt,” said a Riyadh-based analyst who asked not to be identified.
“It had a bad time, but then bargain-hunters entered the stock and it has been building momentum. People are also buying Saudi Telecom as a catch-up.”
The Tadawul All-Shares Index (TASI) climbed 0.6 percent. Volumes rose for a fourth day, but remain markedly below the three-month average.
Seven sectors closed with losses ranging from 0.08 percent in the cement sector to 2.01 percent in the hotel & tourism sector. Gains across the other eight sectors ranged from a modest 0.13 percent in the real estate development sector to 2.07 percent in the telecom & IT sector.
Overall market breadth was negative with 47 advancers losing out to 63 decliners, giving an AD ratio of 0.75, the Jeddah-based Financial Transactions House (FTH) said in its daily market commentary.
“Oil prices are doing nicely and the global situation is looking good, which is helping to build confidence locally,” the Riyadh-based analyst added.
Kuwait heavyweights clawed back most of the previous day’s losses, with Zain adding 2.1 percent and Agility surging 9.6 percent.
“The market is doing quite well, driven mostly by Agility and Zain — there’s no news flow, just interest coming back into the market, with the New Year seeing new allocations coming through,” said Shahid Hameed, Global Investment House head of asset management for the Gulf region. “Until January-end the market will be stable to positive and I don’t see any downside risk for the time being.”
— With input from agencies