US crude oil futures rose more than $1 a barrel on Monday as the dollar eased against a basket of currencies while European stock markets rose. “Unless we get a sharp, rapid drop in the price of oil, triggered by genuine fears of the US economy going back into recession, I think we’re OK,” said Ibrahim Masood, senior investment officer at Mashreq bank. “Given the kind of growth fears in developed markets, a slightly lower price of oil is actually a good thing — it acts as a tax cut in these oil consuming countries. Even with the price in the mid $70s or so, our region as a whole is not impacted negatively.”Saudi Arabia’s index ended flat, as bargain hunters picked up attractive stocks after two sessions of losses that dragged the index to a 23-week low. Banking stocks led the rally with Al-Rajhi Bank and Samba Financial Group gaining 0.7 percent each. Fresh data published on Monday revealed that Arab capital markets plunged by nearly $32 billion in the first 20 days of August. Most of the decline was in Tadawul as well as in Kuwait, Qatar and Egypt, a Dubai report said, citing the Abu Dhabi-based Arab Monetary Fund (AMF).From around $913.3 billion at the end of July, the combined market capitalization of the Arab world’s 15 official stock exchanges dipped to about $881 billion, a decline of $32.3 billion in 20 days, an average $2.1 billion per working day.Saudi Arabia’s bourse alone plunged by around $16 billion to $321 billion from $337 billion, accounting for half the total Arab market fall.UAE bourses edged higher on Monday as investors picked up cheap stocks, although limited gains suggested a wary approach due to global concerns. Retail-driven stocks held attention with Emaar Properties leading the turnover, and rising 1.1 percent. Logistics operator Aramex gained 2.9 percent and telecom operator du advanced 2 percent. Dubai’s benchmark rose 0.9 percent, trimming its 2011 losses to 10.2 percent. “The markets are consolidating after the weakness we saw yesterday — investors are not too worried about oil prices, which are holding steady,” said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. “There is optimism that Qaddafi will be out anytime now.” Abu Dhabi’s benchmark ended 0.6 percent higher, lifting from Sunday’s near 24-week lows. Aldar Properties gained 0.9 percent, accounting for more than a third of all shares traded on the index. Etisalat rose 0.5 percent. Oman’s index slipped 0.2 percent and volumes slumped to a one-week low, as investors unwound positions ahead of the Eid public holiday which marks the end of the Muslim fasting month. Bank Muscat was the main drag, falling 1.2 percent. Investors are still wary of Renaissance Services after the company reported fraud at its marine unit Topaz and first-half net profit fell 77 percent. The oil services firm ended flat at 0.57 rials, having slumped to a 2009-low on Wednesday. “The stock has reacted sharply post disappointing Q2 results and we believe that it has also priced in for the impending concerns surrounding Topaz,” said Kanaga Sundar, Gulf Baader Capital Markets head of research. “We recommend a neutral rating on the short term and an accumulate rating over a long term horizon. We have arrived at weighted fair value of 0.665 Omani rials.” “Market volumes continue to remain dull, expect activity to pick up post Eid holidays,” he added. Elsewhere, Kuwait’s index ended 0.3 percent higher, rising from Sunday’s seven-year low. National Bank of Kuwait jumped 6 percent after International Bank of Qatar (IBQ), in which it owns 30 percent, sold its Islamic banking retail operations to Qatar’s Barwa Bank in the first sale of an Islamic portfolio since Qatar’s surprise edict banning conventional banks from offering Islamic banking services. Barwa Bank is a unit of Barwa Real Estate, which advanced 0.2 percent.Other heavyweights also supported the index, with Zain and Gulf Bank rising 1.1 percent each.
