Ajman bank, the seventh Islamic bank in the UAE, made a record rise in its first day of listing on the Dubai Financial Market, driven by high speculation on the shares. The Abu Dhabi Securities Exchange fell by 0.34% and Bahrain fell by 0.93%, while the remaining five markets displayed strong rises including Doha which rose by 1.4%, Muscat by 0.85%, Dubai by 0.73%, Saudi Arabia by 0.34% and Kuwait by 0.29%.
Dubai: Foreign portfolios shift to purchasing
Financial analysts said that foreign funds and portfolios have switched from selling to buying, which has contributed to today's rise and has given an indication that liquidity is back in the market ahead of H1 results.
Al Fajr Securities economic consultant Dr Hamam Al Shamaa says that now is the best time for investors who wish to enter the market as they might find it difficult if they don't enter now to match the rising prices.
Al Shamaa added that Abu Dhabi's 12.6 and Dubai's 14.1 profit doubling is attractive for buying and is a good indicator for investment portfolio restructuring.
Ajman Islamic Bank attracted the attention of traders today, opening at Dhs2.85 and jumping subsequently to Dhs5. This is compared to Dhs1, its IPO price, but it closed later below Dhs4 at Dhs3.96.
Ajman Islamic bank dominated 50% of the total market trading which reached Dhs2bn, with most leading shares up after foreign portfolios shifted from selling to buying.
According to the DFM report, non-Arab and Gulf traders' purchasing deals reached Dhs395.7m against sales of Dhs274.1.
Abu Dhabi: Methaq breaks Dhs6 mark
Abu Dhabi Securities Exchange fell for second consecutive session amid fears that it would break the 5,000 point barrier, which was the resistance point one month ago.
Trading value fell below Dhs1bn but hit Dhs800m.
As usual Methaq went against the market trend and jumped to its highest limit of 10%, breaking the Dhs6 mark following intense speculation on the shares for two weeks despite the announcement of the company, which has yet to start operations, that it has no information of the reasons behind the rise of its shares.
Kuwait: Arabian Real estates follows Methaq path in Abu Dhabi
Kuwait maintained its upward trend for the seventh consecutive session, approaching a record level of 15.600 points.
Arabian Real estates jumped 10%, trading 28 million shares out of total 398 million for the whole market despite an announcement by the company that it has no justification for the price increase.
Bayan Investment shares jumped too, by 7.5%, after the company announced a profit of KD47m after one of its affiliated companies, Bonyan, announced the sale of land plots in Al Reem Islands in Abu Dhabi, achieving a profit of KD75m.
Saudi Arabia: Speculation on selected shares
Sharp speculation has been witnessed on selected shares in the Saudi market especially in the insurance sector and some banks, including Al Inmaa which dominated 12% of the market overall. Trading reached SR10bn.
Al Inmaa shares rose 2.6% to hit SR19.25.
Insurance sector topped the speculation, including Malath which rose by 9.7%, Aseej by 9.7%, Alliance by 4.8%, while United Insurance fell by 1.7% in its second day of trading after it rose 180% in its first trading day.
The rise of the petrochemical sector, including Sabic by 0.16%, Kayan by 0.94% and the Saudi Group which hit a new record high of 4.2% at SR42.75, have pushed the index up.
Zain regained its value following Hermes' negative recommendation and rose by 0.98%, while STC declined by 1.1% and Mobily fell by 0.45%.
Doha and Muscat: Regain some of the losses
Doha securities market is back to register a strong rise, compensating for the 2.8% losses it posted last week.
Four shares out of 38 traded have dominated 60% of the total trading, which hit 18 million.
Gulf Holding traded 4 million shares, rising by 5.1%, Al Rayan bank traded 3 million shares rising by 0.43%, Naqilat traded 1.6 million shares rising by 2.4%, and 'Care' traded 1.1 million shares, rising by 0.96%.
Muscat, after posting 3% losses last week, rose today supported by 5 shares which dominated 80% of the total 17.4 million shares traded in the market.
Muscat Bank rose today by 3.4% after a series of falls last week, while Resot Cement rose by 1.2%.
Bahrain: Biggest loser
Bahrain's stock market was the biggest loser in today's Gulf markets after its index came under heavy pressure from the banking sector. Al Salam bank led the losses, falling by 2.9%, while Al Banader fell by 6.1%
Since the Bahraini index failed to keep above 2.900 points, all shares fell, including leading shares like Al Salam and Al Ithmaar.