DUBAI: Gulf markets yesterday took direction from global bourses, with a positive Asian session spurring gains on some bourses.
“It’s a case of follow the leader,” said Julian Bruce, EFG-Hermes’ director of institutional equity sales. “If Europe weakens later, the US comes off a bit and oil goes down again, we’ll give it all back again tomorrow.”
Earlier-closing Gulf markets fared better, with Abu Dhabi snapping an eight-day losing streak as it climbed 0.5 percent to ease away from four-month low.
Aldar Properties and Sorouh Real Estate were the main supports, rising 3.9 and 4.2 percent respectively after accounting for more than half of all shares traded. The pair are in merger talks.
“There was a late rally on Aldar and Sorouh, likely on merger speculation,” Bruce said. “However, this is probably getting ahead of one’s self as the advisers have only just been appointed and they won’t have had chance to kick the tires yet.”
In Dubai, the bourse rose 0.9 percent, while Kuwait and Oman made gains for a first session in four.
Kuwait’s Agility, which on Monday said it had bought a 62 percent stake in United Projects for Aviation Services Co. and would table an offer for the remaining shares, jumped 5.5 percent.
UPAC rose 6.6 percent to 0.405 dinars ($1.44), its highest close in 15 months. Agility has offered 0.320 dinars per share for the outstanding 38 percent.
In Oman, the index rose 0.8 percent. HSBC Bank Oman climbed 2.1 percent — a five-week high — and Bank Muscat gained 2 percent.
Having begun the day brightly, European shares and the euro dropped after Spain’s Treasury Minister voiced concerns the euro zone’s fourth biggest economy was being shut out of credit markets — two days before a planned debt auction.
Egypt’s benchmark slumped to a 19-week low yesterday as further protests ahead of this month’s presidential run-off spurred nervous investors to sell.
The index dropped 2.3 percent to its lowest close since Jan. 26. Orascom Telecom fell 4.3 percent, Orascom Construction lost 2.2 percent and Commercial International Bank dipped 1.8 percent.
“The market is just reflecting the political situation and the economic worries,” said Osama Mourad of Arab Finance Brokerage.
“We are moving toward the anticipated transfer of power from the military council to a civilian president and this should be met with optimism in the ideal scenario. But there is so much mistrust that the worries overshadow the optimism.”
Gulf investors take direction from global markets
