Dubai's market rises following move to fight corruption
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Dubai's market rises following move to fight corruption

Dubai's market rises following move to fight corruption

The decision taken by the Dubai government to fight corruption in its private and public sectors gave traders a feeling of comfort yesterday. The Dubai Financial market climbed 0.47% while the ADX rose by 0.53% amid low trading values with less than Dhs1bn. Analysts expect the new measures to fight corruption will increase liquidity in the market.

    The Dubai market has fallen by 8% in the first half of 2008 as a result of corruption charges against the CEO of Deyaar Zak Shaheen and other influential management figures in Dubai Islamic Bank, which left shares of DIB and Deyaar at a record low.

    The market has also lost 7% of its value because of the negative impact of news of corruption charges against CEO of Tamweel Adel Al Sherawi and other officials in Nakheel which is owned by the Dubai government. Tamweel has lost 25% of its value since the case started.

    The Doha stock market made a considerable rise yesterday with a 1.5% gain, while the Saudi market continued to rise for 6th consecutive session up 0.65% today. Muscat too rose by 0.35%, while Bahrain fell by 0.63% and Kuwait by 0.11%.

    Dubai: Optimistic feelings

    The Dubai Financial market started to rise yesterday following news of the Dubai government's decision to fight corruption which encouraged traders, especially Arabs and Gulf nationals, to switch to buying.

    Tamweel, which has lost 25% of its value since its CEO was hit with corruption charges, rebounded yesterday by gaining 3.5% to Dhs6.07, while Emaar rose by 0.92% to Dhs9.78. Emirates NBD fell by 0.87%, which negatively affected the index.

    The rise of Sorouh and Aldar led ADX to rise after trading Dhs443.6m. Sorouh rose by 1% while Aldar rose by 2.4% to Dhs10.50.

    Saudi Arabia: Astra rises 11% in first day

    Astra registered an 11.3% rise in its first day of trading reaching SR46.75, compared to its IPO price of SR42, opening the session at SR47 and reached SR48.50 during trading.

    Astra dominated 25% of the total trading after trading SR4.6bn and 7% of the total traded shares which reached 386.4m. Astra has already launched 30% of its shares for public offering representing 22m shares and collected around SR2bn out of the IPO which was 300% oversubscribed.

    The Saudi market rose for the 6th consecutive day after support from all leading sectors including petrochemicals and telecoms.
    Major shares in banking sectors registered a considerable rise including Arab National Bank by 2.6% and Al Rajhi by 0.62%.

    Sabic too rose up by 0.62%, while Petrorabigh jumped by 1.9%, while on the other hand STC and Mobily jumped by 2.3% each.

    Maklah rose by 3.3% to SR38.25 after the company posted 119% increase in H1 profits which reached SR46m compared to SR21m last year.

    Kuwait: Hermes takes over 50% of Offset Holding

    As usual, the Kuwait Stock Exchange managed to lower its loses in the last minutes after support came from banking and industrial sectors, while other sectors continued to make a heavy impact on the Kuwaiti index.

    Kuwait Invest rose by 5% after it announced that it has sold 50% of its stake in Offset to Hermes in a deal worth KD33.4m. The deal will generate an income of KD16m which will enter in the third quarter profit.

    Doha market is back to strong rises

    The Doha market has returned back to strong rises after the sharp correctional wave it went through. The market rose by 1.5% amid low trading below QR.05bn.

    The rise in the market was supported by Qatar industries and Qatar Commercial bank which rose by 3%, QNB by 1.9% after it announced that it has raised its stake in Jordan's Housing bank to 32.4%.

    Qatar Islamic Bank shares rose by 1.3% while Qatar Industries rose by 0.73%.

    Muscat: Sohar Energy share rises 38% in first day

    Sohar Energy traded 59.3% of the total trading today which stood at OR14.5m and 49.4% of the total shares which reached 9.1m. The shares rose by 38.4% to OR1.897 compare to OR1.370, its IPO price.

    Omantel's shares rose up by 3% after trading 4.2m shares, while the Oman government announced that 8 telecom firms have already qualified to enter the bid to buy 25% of Omantel shares.

    Bahrain continues to decline

    The Bahrain market continued to resist extensive sale operations on major shares with 8 shares remaining unchanged.

    Investcorp fell sharply by 3.5%, while GFH fell by 2.3% and Al Baraka by 0.34% following a profit gaining wave after announcing a 60% rise in H1 profits.

    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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