Complex Made Simple

Arab portfolios support Dubai Financial Market

Dealers at Dubai Financial Market said that extensive purchases by Arab and UAE investors intervened today to limit the negative impact of foreign selling which continued for a second consecutive day. Despite this, UAE shares added more losses today, totaling Dhs1.8bn, to reach Dhs21.3bn in two days as Abu Dhabi market fell by 1%. All Gulf markets fell today, except for Kuwait, which rose by 0.20%. Doha fell by 0.86%, Muscat fell by 0.72%, the Saudi market fell by 0.37% and Bahrain fell by 0.16%.

Dubai rebounds slightly, while Abu Dhabi slumps

Foreign portfolios and investment funds continued their extensive selling for the second consecutive day after warnings of possible terrorists attacks were issued by the US and British embassies.

Total foreign sales reached Dhs394.8m out of total trading worth Dhs1.8bn. Purchases equalled Dhs256.4m according to a report by Dubai Financial Market.

Arabs investors continued to buy, along with UAE investors, with total purchasing of Dhs160.8m against Dhs153.8m selling orders.

Emaar share broke the Dhs11 mark to Dhs10.95 during trading which created panic among investors, but later rose to Dhs11.30 – rising by 1.8%.

Abu Dhabi Securities Exchange continued to fall for a second consecutive day after extensive selling by foreigner portfolios. A total of 33 listed companies fell while only 7 companies rose.

Methaq Takaful Insurance informed the authorities that it had no substantial explanation as to why its shares are continuing to rise; Methaq shares registered an 8.6% increase, dominating 50% of the total market trading which reached Dhs1.6bn.

Taqa slumped sharply today, losing around 10% of its value, affected negatively by its bonds IPO issue which shareholders contested last week.

Saudi Arabia: Hermes recommendation affects Telecom shares

The Saudi market fell by 0.37% but managed to end its week up 0.93%.
A report issued by Hermes Group about the Telecom sector in the kingdom aroused confusion in the market.
Hermes determined the fair price of Zain to be between SR11 and SR17, while recommending the purchase of Saudi Telecom shares and determined their price at SR101, and Mobily’s fair price at SR85.60.

Following the report, Zain was subject to extensive selling and fell by 5%, closing down by 3.6% at SR26.25 despite accounting for trades worth SR1.5bn out of total trading of SR9.7bn for the market.

STC shares rose by 1.1% to hit SR64.50 and Mobily rose by 2.2% to SR26.25 after Hermes’ positive recommendation.

Kuwait: Al Safah and Al Masalekh up

Kuwait’s Stock Exchange moved ahead unabated with the decline of other Gulf markets rising for the fifth consecutive session.

Al Safah International and Al Masalekh have informed the market authorities that they have no explanation behind the rise in their respective shares.

Al Masalekh rose by 8.3% and Al Safah by 8.1%.

Hits Telecom share slumped by 6.2% despite an announcement by the company that it had acquired 98% of Hits Telecom shares worth $197.5m.

Doha and Muscat: Cultivating profits and pressure from banks

Doha’s stock market index failed to stay above 12.500 points as pressure came from the banking and service sectors ending the day below QR1bn.

Muscat Bank continued its pressure on the index falling by 1.4%, while Fulltamp continued its upward trend after two days of listing, rising by 2.8%.

Fulltamp dominated 47% of the total trading and 33.6% of the total shares, valued at OR11.1m out of total trading of OR23.6m.
Fulltamp traded 7.5 million shares out of 22.3 million overall shares.

Bahrain’s stock market has been cultivating profits after it failed to stick to its historic mark of 2.900 points after pressure came from the banking and investments sectors.

Bahrain stock market traded only BD1.4m and 3.8 million shares.
Gulf Finance House fell by 2.1%, Gulf Commercial Bank, which GFH owns 30% of, fell by 1.2%, while Batelco rose by 0.61% and Al Salam by 0.86%.