RIYADH, 28 January 2008 — The seven Gulf stock market benchmarks closed higher yesterday, with local investors stepping in to buy stocks dumped by foreign institutions last week as they scrambled for the exit during a global equity market rout.
“All over the region the buyers are local investors,” said Adel Nasr, a broker at United Securities in Oman. “Foreigners are waiting on the sidelines.”
The Saudi Tadawul all share index climbed 3.78 percent to 9,789.07 points, it’s biggest daily gain since Jan. 5. SABIC rallied 3.53 percent, its steepest one-day climb in three weeks. The stock lost 25 percent of its value after missing fourth-quarter earnings forecasts because of slowing chemical demand in the United States.
“The market has overcorrected,” said Youssef Kasantini, chief executive of Bourse Experts, a Riyadh based consultancy. “People are realizing that the company has a lot of new projects coming on stream and exports to Asia to sustain growth.”
Saudi Telecom Co surged 5.5 percent. Abu Dhabi’s benchmark rallied for a third day to close 2.2 percent higher at 4,683.21 points.
Dubai’s index gained 1.19 percent to 5,668.87 points, having dropped 7.5 percent last week as foreign investors sold $2.2 billion worth of shares. Emaar Properties climbed 0.38 percent.
Oman’s index jumped 1.66 percent to 9,237.94 points. Oman Telecommunications Co climbed as much as 4.05 percent after beating analysts forecasts with a 46 percent jump in fourth quarter profit. It ended 2.43 percent higher. Bank Muscat rallied 2.89 percent.
Kuwait’s index gained 0.57 percent to 13,336 points.
Qatar’s benchmark climbed 0.83 percent to 9,578.79 points, having lost 10 percent last week. Qatar Islamic Bank led the rally, jumping 1.93 percent.
Bahrain’s index rose 0.18 percent to 2,799.20 points.
