Complex Made Simple

Strong gains for UAE and Qatar in markets

Gulf stock markets posted strong performance in Dubai and Doha today, while KSA and Kuwait registered a slight decline. The stock market in Doha led the rise, gaining 1.4%, followed by Dubai, which rose 1.1%, while markets in Abu Dhabi, Muscat and Bahrain rose by less than 0.5%.

By Abdul Rahman Ismail

Shares on the various UAE markets profited Dhs6bn, after a month of fluctuation. Trading on the Abu Dhabi Financial Market (ADFM) and Dubai Financial Market (DFM) hit Dhs3.5bn, split almost evenly between the two.

DFM and ADFM

After a period of ups and downs, Emaar shares led the rise, gaining 1.3% or Dhs11.60. The index was also strengthened by Emirates NBD shares, the second strongest shares after Emaar, rising by 0.83%.

Gulf Shipping and Amlak rose by 3% and 5% respectively, as Amlak shares ignored the impact of the company’s dispute with Kuwait’s Al Mazaya on the Sky Gardens project at DIFC.

According to analysts, the rise in the DFM index was pushed by foreign trading, especially orders by Gulf investors, which rose to Dhs152m compared to less than Dhs50m in previous sessions. Overall, foreign purchases jumped to Dhs582.6m, or 34%, compared to Dhs537m in sales orders.

The Abu Dhabi Financial Market managed to stay above the 5,000 points mark, while speculation continued on cement and building materials shares, which pushed the index to close at Dhs1.8bn.

Ras Al Khaimah Cement Company offered no explanation for the continuing rise of its shares which, rose by 6.1%. It topped the most active shares in terms of value and quantity at 144.5 million shares out of 491.6 million shares traded in the market, valued at Dhs497.3 million.

Turmoil in Saudi Arabia

The Saudi stock market, which was the Gulf region’s biggest loser of the month in May, started June in a shaky fashion, influenced early on by the Tuesday listing of Al Inmaa Bank.

The market was up and down throughout the day, finally closing down by 0.27%, with a value of around SR5bn. The leading market sectors, including banks and petrochemical companies, also fluctuated during trading.

In the banking sector, Samba declined by 0.29%, Saudi Hollandi bank by 2.8% and Al Rajhi by 0.28%, although Saudi French Bank and AlBilad had good days, rising 1.2% and by 1.3% respectively.

The petrochemical sector, led by Sabic, declined by 0.17%, despite topping the market in terms of value.

Yansab shares declined sharply by 3.2% one day after the company announced plans to borrow SR6bn to finance its expansion and despite Global Investment House’s recommendation to buy the share.

Anabeeb shares fell back 3.1% today, after enjoying a good day yesterday when its maximum price was influenced by Shuaa Capital’s ‘buy’ recommendation. Shares in Zain, Mobily and Saudi Telecom Company remained unchanged during trading.

Qatar above 12,000 points

Qatari shares, which registered a 5% rise last month – the highest among all GCC markets – kept its momentum today, rising above 12,000 points. It was led by seven shares, which accounted for 73% or 19.3 million of the total 26.4 million traded shares in the market, valued at QR1.4bn.

Gulf International rose to its maximum limit of 10%. Analysts attributed the rise to investor speculation which has helped the company’s share price since it was listed last week, trading 4.9 million shares.

Oman focuses on Sohar Bank

Sohar Bank was the focus of attention in the Omani market, after taking 57% of the total traded shares – 23 million of the 40.1 million traded. It left Sohar with a value of OR5m, rising by 2%.

The Muscat Stock Market rose by 0.32%, with Oman Fisheries keeping its top spot (up 6.7%) for third consecutive session, after the company’s board of directors suggested non GCC nationals could own not more than 70% of the company’s shares, which has enhanced its status in the market.

Bahrain and Kuwait

Al Salam Bank shares helped edge the Bahraini market up slightly by 0.13%, after it rose 4%, trading 2.5 million shares. This made up 65% of the total market, which saw 5.4 million shares traded, worth BD1.8m.

The political crisis which hit Kuwait’s Parliament today reflected negatively on the market, which still managed to remain above 15,000 points despite declining slightly by 0.07%.

The banking sector, which posted losses during the last three weeks, rose today, while the real estate, service and industrial sectors declined. National Bank of Kuwait rose by 2.2%, Bobyan by 1.7%, Commercial bank by 1.4% and Burgan Bank by 1%.

Jasim Al Khurafi Group shares rose after its owner was elected the speaker of Parliament today. Zain, which is 10% owned by Al Khurafi, rose by 1.2%. Elsewhere, Al Sahel and Al Mal rose 1.7% and 1.6%, while Agility, which had seen its shares rise for three consecutive sessions, declined 3.2 %.