GCC markets calm after marathon rises
Complex Made Simple

GCC markets calm after marathon rises

GCC markets calm after marathon rises

A relative calm fell over the Gulf stock markets today, after a series of strong rise since the start of the month. Four stock markets registered a slight decline, while three others rose, including the Doha Securities Market (DSM), which closed up 0.91%, its seventh consecutive rise. Muscat also rose 0.91%, while the Abu Dhabi Securities Exchange (ADX) was up 0.44%.

    By Abdul Rahman Ismail

    In Saudi Arabia, the Tadawul finished its trading week up 0.28%, although today's index declined by 0.80%, after petrochemical sector dropped.

    Fears in Doha of correction rise


    Analysts believe that markets, especially those in Doha, Kuwait, Abu Dhabi and Muscat, need to calm, after registering record highs. Markets need to capitalise on their profits after a run of strong rises, they said.

    Many fear a correction on the DSM, after its continuous rise since the start of the month registered record highs, crossing a historical 12,000 and 12,500 points. It would make any correction painful.

    The index rose for the seventh successive trading day, supported by banks, insurance and real estate. They traded QR1.8bn, down from yesterday's QR2bn, on a volume of 27.2 million shares. Seven DSM shares dominated, accounting for 18.6 million of today's trades.

    Emaar hurts the DFM


    The Dubai Financial Market (DFM) continued to fluctuate, having rise on Monday and then fallen on the following two days. It was hurt by Emaar, which fell again, today by 0.43%, closing at Dhs11.35.

    The DFM fell slightly, by 0.06%, despite Emirates NBD and Dubai Islamic Bank shares rising by 2.1% and 0.33% respectively. Dubai Islamic Bank said it is not affected by the bribery scandal involving one of its key officials, who is accused has trying to reduce the pressure on the company's share.

    Meanwhile, the ADX consolidated its gains of 0.44%, trading Dhs1.8bn compared to Dhs768m for the DFM, which shows the availability of cash, focused mainly on energy and banking sectors.

    Saudi Arabia - a green week with slight gains


    The Saudi market rose 0.25% for the week, although the petrochemical sector closed down today, after Sabic's share remained unchanged following the announcement of the start of its Al Razi production unit.

    The banking sector's losses continued, following pressure on Samba, which fell by 3.8%, and Al Rajhi, which dropped 1.8%, pushing banking shares collectively negative.

    And despite Emaar's $35bn of new projects at the King Abdullah Economic City, its share fell by 1.9%.

    Kuwait: Agility and Mena continue the rise


    The Kuwait Stock Exchange fell slightly today by 0.04%, after five consecutive rises and hitting new highs.

    Agility rose by 4.5%, trading 15 million of the 449 million shares traded, following its US army deal. Mena Holding rose for the fourth consecutive session, registering a rise of 6.9%, after the company announced that it expects to post profits of KD2.5m after it sells one of its subsidiaries.

    Leading shares pressurise Bahrain index


    Bahrain's stock index fell 0.07%, after leading shares such as Tameer fell by 1.8%, Al Salam by 1.4%, and Esterad Import by 1.3%.

    Bahrain National Holding dominated 30% of the 3.7 million shares traded today, but closed unchanged.

    Muscat's rise supported by Omantel


    Muscat, like Doha, kept its momentum and rose by 0.90%, supported by Omantel, which traded OR2.7m, comprising 14.8% of total market trading rising. It's share rose 2.8%.

    Al Anwar Holding and Oman-UAE Investment drew the attention of traders. They traded 3.6 million and 3.3 million shares respectively, out of the total 26.8 million shares. Al Anwar rose 3.8%, while Oman-UAE Investment closed up 1.6%. Building material shares fell 1.7%, despite trading 3.2 million shares.
    Author
    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.

    © 2021, ADigitalcom. All rights reserved