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Record highs for five Gulf markets

Five Gulf markets registered record trading on Wednesday including, Muscat, Abu Dhabi, Doha, Kuwait and Bahrain, after a rising wave which swept across all the GCC markets.

By Abdul Rahman Ismail

The Tadawul in Saudi Arabia rebounded strongly following yesterday’s dip, with an unexpected rise of 1.6%. It was the biggest winner during trading, and finished the week up 1.7%.

The next biggest winner of the day was Muscat, which rose 1.4% to a record high, edging ever closer to its historical 12,000 points. In Doha, the Qatar Securities Market managed a rise of 0.32%.

The Abu Dhabi Securities Exchange (ADX) edged a little over the 5,000 mark, with 0.47% rise, while Kuwait followed a similar scenario, settling just above 15,000 points, up 0.28%. Bahrain approached its highest point of 2,900 points, rising slightly by 0.04%.

Dubai: Marginal shares dominate the scene

The Dubai Financial Market (DFM) rose 0.28% – up 16 points, following its 0.38% fall the previous day. It was supported by small shares driving the index and crept to the 6,000 points it relinquished two months ago.

Small shares dominated trading, after Emaar’s stock closed unchanged at Dhs11.70, ignoring the positive report from Citigroup which said it could reach Dhs21 and even Dhs31 a share.

Emaar shares were unaffected by the report, as they were to a similar report by EFG Hermes, which expects the price to reach Dhs18.4.

Dubai Investments share was at the forefront of trading, making strong gains and breaking Dhs4, rising 2.8%. Tamweel was the most active company on the market, taking Dhs208m of the Dhs1.3bn traded overall. It rose 0.70% after it was converted to a holding company and established a real estate investment company with Dhs200m capital.

The Abu Dhabi market enhanced previous gains, hitting 5,137, supported again by cement shares, which continued to make strong gains, following a run on Ras Al Khaimah Cement and Fujairah Cement shares. RAK Cement topped the most active shares in terms of value and volume, rising by 1.8%. Fujairah Cement shares topped the most rising shares list, approaching the maximum limit of 10%.

According to a report issued by Rasmala Investments, ‘estimates on UAE markets seem relatively attractive’; it said profits announcements during July are likely to push the market higher.

Saudi Arabia: Strong rebound by 1.6%

Saudia Arabia’s market registered an unexpected rise, valuing it at SR13.6bn as all attention was again directed at Inmaa Bank shares, which accounted for SR3bn of trading, rising 9.3%.

Saudi analysts explained the rebound as a result of last month’s losses of 5.5%.

Many investment funds and portfolios piled in, their confidence boosted by Inmaa Bank’s listing, which had cause some of the market fluctuation in the run up to its first day of trading on 3 June.

Prices for 105 firms rose and only seven companies fell, a clear indication of the cash flow which has entered the market and bought more than it sold.

Sabic led the petrochemical sector, rising 2.8% and helping other related shares, including Yansab (up 3.8%), Petrorabigh (up 2.7%) and Kayan (up 1.9%).

Analysts said the rising shares were a direct result of speculation, suggesting investors are taking a wait and watch approach for next week’s trading, as the market closed 1.7% higher this week.

Muscat and Doha: Seven shares dominate trading

Industrial, service and investment sectors pushed the Muscat index towards 12,000 points, as seven shares dominated 49% of the total trading, which reached OR26m, as 24 million shares were traded.

The biggest support came from four leading shares: Al Nahda rose 5.5% to be valued at OR2.4m, Oman and Emirates climbed 2.6%, Oman Kroum was up 8.6% and Omantel gained 2%.

The Doha stock market index settled above 12,000 points, supported by Gulf International which dominated half of the session’s trading, rising 5.4%.

Like the Oman stock market, Doha saw seven shares dominate 80% of the trading among 40 traded companies.

According to the Rasmala report, Qatari firms are expected to exceed the average profits companies post in the region, following unprecedented economic growth.

But even with this positive expectation, profits are closer to 19 times the estimates of 2008 profits, which makes it the most expensive market in the region.

Kuwait: Foreign shares lead the rise

The Kuwait Stock Exchange (KSE) crossed 15,000 points, supported by foreign listed shares, including Emirates Cement companies and Gulf Finance House, which posted a strong rise.

UAE Cement rose 3.1%, Fujirah Cement 2.1%, Umm Al Qwain Cement 2.7% and Gulf Finance House by 3.5%.

Al Safa International continued its upward trend for the second consecutive day, rising 9.8%, despite posting losses in the first quarter of the year.

The Bahrain stock market rose slightly, approaching the 2,900 points and moving toward the historical 3,000 mark.

Bahrain market trading was valued at BD3.4m, with 5.3 million shares changing hands, including three million shares going to Bahrain and Kuwait Bank and Gulf Tameer, which posted the highest rise in the market of 6.3%.