JEDDAH/DUBAI: Kuwait’s index hit a five-week closing high on Wednesday after the prime minister survived a key vote and most other Gulf Arab markets advanced in subdued trading as investors paused ahead of full-year earnings.
Emaar Properties lifted Dubai’s index to a two-week closing high, with the developer’s ongoing volatility proving a magnet for speculators, while Qatar resumed its rally after the government said it would buy stakes in some banks.
The Saudi and Bahrain measures made minor gains, but Abu Dhabi and Oman fell for a second day, with little to tempt buyers back to the market.
Kuwait climbed 1.2 percent to 7,014 points, its fifth straight rise, after Prime Minister Sheikh Nasser Al-Mohammad Al-Sabah survived a non-cooperation motion from opposition Mps.
Emaar rose 7 percent to its highest finish since Dubai World shocked investors by asking for a debt standstill on Nov. 25. Emaar was the most active stock, accounting for almost a quarter of all shares changing hands on the index. Deutsche Bank and Credit Suisse each upgraded their ratings for Emaar this week.
“Day traders look for two things — volumes and a wide spread and Emaar offers both of these right now,” said Ayman El-Saheb, Darahem Financial Brokerage director of operations. Dubai’s index rose 2.5 percent to 1,890 points — its highest close this month. Analysts played down the significance of the Dubai’s rise, saying the market was likely to trade sideways until further disclosures about the emirate’s debt position, with Wednesday’s gains the work of speculators rather than long-term investors.
“The recovery in Dubai is sufficient for now — there still remain significant doubts about its debts going out to 2013 and we are dealing with a region that is still cash-strapped,” said First Investor’s Edwards.
“A cloud will remain over Dubai for most of 2010 and we would see better opportunities in Abu Dhabi.” The Abu Dhabi index dropped 0.9 percent to 2,768 points.
Doha climbed 0.4 percent to 7,168 points after the government said it would spend $900 million buying bank stakes.
Saudi Arabia’s Tadawul All-Share Index (TASI) ended 0.72 percent higher at 6,153.85 points. The market almost reversed all of Tuesday’s losses, with only two sectors closing with losses on Wednesday. The losing sectors were the Agriculture & Food Industries and the Insurance sectors, which saw losses of 0.01 percent and 0.70 percent respectively. Overall, sector gains ranged from 0.01 percent in the Retail sector to 2.48 percent in the Media & Publishing sector. Market breadth was also positive, with 81 advancers and 38 decliners giving an AD ratio of 2.13, the Jeddah-based Financial Transaction House (FTH) said on Wednesday. — With input from agencies
