AIG bail-out saves Gulf bourses
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AIG bail-out saves Gulf bourses

 AIG bail-out saves Gulf bourses

Two days after the sharp losses that followed the collapse of Lehman Brothers all local bourses rebounded, regaining some of their losses by responding positively to the announcement that the US administration is to step in to save AIG, the largest insurance firm in the world.

    Doha shot up 8.6%, Muscat 4.1%, Dubai 2.3%, Tadawul 2.3%, Kuwait 1.8%, ADX 1.6% and Bahrain 1.1%.

    The rebound came at the hands of local portfolios, while foreign funds continued to sell, taking advantage of the rebound registered at all markets.

    A feeling of relaxation prevailed after the US reserve decided to rescue AIG from bankruptcy.

    A report issued today by Global said that until recently, Gulf markets were not affected by the international crisis, but witnessed a sharp decline as a result of the international markets.

    The report added that the decline was the direct result of the fleeing of foreign funds from emerging markets, the collapse of Lehman Brothers and crisis at Merrill Lynch.

    UAE shares regain Dhs11.8bn

    UAE shares regained Dhs11.8bn from losses that reached Dhs30bn after a strong rebound and considerable increase in trading value, which touched Dhs2bn for both markets.

    Local funds and Arab investors have been encouraged to buy shares at low prices after shares reached record lows, pushing the index back above 4,000 points.

    According to the DFM report, foreign sales jumped to Dhs420.3m from the total trading of Dhs1.3bn against purchasing of Dhs196.6m.

    All 23 listed shares witnessed a rise including Emaar by 1.9% to Dhs7.27 with a trading value of Dhs467m, which represents 36% of total trading of Dhs1.3bn.

    Arabtec saw the highest rise, going up by 8% to Dhs12.15.

    Abu Dhabi up on real estate and telecoms

    Abu Dhabi managed to keep its rebound for the second day after support from the telecom, real estate and energy sectors.

    Etisalat rose by 3.8%, and Aldar by 4.3% to Dhs7.40 after trading Dhs255m out of total trading of Dhs647.7m.

    Sorouh also rose by 3.2% to Dhs5.74 after the announcement by its CEO that third quarter profit will be equal to Q2 figures after improvements in sales.

    Saudi Arabia: Weekly fall reaches 9.1%

    The Saudi market rebounded after support from all sectors except energy, with electricity down more than 2%.

    The Tadawul index ended the week down 9% however.

    Chemanol rose up by the maximum limit of 10% in the second day of trading, crossing SR15.4.

    All leading shares supported the index, including Sabic by 0.94%, Samba 0.73%, Al Rajhi 3%, Alinmaa 3.8%, while all petrochemical shares rose up except Petrorabigh which fell by 0.46%.

    Telecom shares also retained their upward trend led by Zain at 3.9%, STC 2.5% and Mobily 0.50%.

    Kuwait: NBK and Commercial buy back shares

    KSE continued to build on yesterday's rebound following the decision by Kuwait's Investment Authority and the announcement by NBK and Commercial bank to buy back 10% of their shares.

    Following these reports, NBK rose by 6% to KD1.220, Commercial Bank 1.6% to KD1.220, KFH up 4.3% to KD2.380, Zain 2.4% to KD1.660, Global 3.85% to KD0.810 and Kuwait's Projects 4.2% to KD0.980.

    The strong rebound pushed the index above the 12.600 benchmark, and up 0.35% since the beginning of the year.

    Doha: The day's biggest riser

    Doha market regained all yesterday's losses after strong rebounds for all 39 shares, except Aamal Holding which fell by 2.7%.

    The index is back above the 8.500 mark.

    Four shares; Al Rayyan, Barwa, Gulf Holding and Commercial Bank dominated 42% of the total trading with 8.4 million shares out of 20.1m shares, valued at QR951.7m.

    The prices of 10 firms rose by the maximum limit of 10% including Industries Qatar up 9.2%, QCB 9.7%, Qatar Fuel 9.3%, Kahraba Wa Maa 9.3%.

    According to traders, local funds are behind the strong rebound which rushed to buy following the decline of prices.

    Muscat regains all of yesterday's losses

    Muscat market regained all of yesterday's losses with support from all leading shares with four, Muscat Bank, Al Nahda, Omantel and Gulfar, dominating 73% of the total trading which reached OR19m.

    Muscat bank rose by 2.8%, Omantel 4.4%, Gulfar 8.4%, Al Nahda 5.5%, National Bank 7.5% and Sohar Bank 5.3%.

    Bahrain moves back to the 2.500 benchmark

    Banking and investment shares pushed Bahrain's index to the 2.500 benchmark.

    Leading shares saw a considerable rise, including Gulf Construction by 10%, GFH 5.8%, Bahrai Islamic bank 2.9% and National Bank of Bahrain 1.2%, while Ithmaar Bak fell by 1.75%.

    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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