The Kuwait and Doha markets bucked the day's performance posted by the other GCC exchanges on Sunday, registering record highs following rises of 1.4% and 0.5% respectively. Doha approached a new record high of 12,300 points, while Kuwait approached a record of 15,300 points.
By Abdul Rahman Ismail
Other Gulf markets took a break from last week's highs and declined, with Bahrain being the biggest loser, declining 0.81%. The Abu Dhabi Securities Exchange (ADX) closed down 0.65%, Dubai 0.53%, Muscat 0.50% and Saudi Arabia 0.28%.
Dubai: Foreign funds behind the decline
Following the record Dhs19bn rise on the UAE exchanges last week, the Dubai Financial Market and ADX dropped Dhs5.8bn in trading on Sunday.
Shuaa Capital Financial analyst Mohammed Ali Yaseen told AME info that all indices were close to resistance points after last week's rise. 'We were hoping to break it, namely 5,800 points for DFM and 5,300 points for ADX, but the sharp decline in the US markets pushed foreign investors to sell in trading, which added to the pressure on the indexes.'
This was particularly highlighted on the DFM, where foreign sales were Dhs331.7m compared to the Dhs173.1m of purchasing orders. Gulf buyers' orders rose to Dhs106.1m against Dhs86.9m in sales. In the wider Arab world, investors' orders rose to Dhs243.6m against Dhs194.6m in sales.
The decline was led by Emaar shares, which dipped 1.2% to Dhs11.60. 'Heavyweight share Emaar doesn't usually push the index to break the 5,800 points; if Emaa's share rises by 5%, the general index will rise by 2%,' added Yaseen.
The ADX declined after pressure from the real estate and industrial sectors. Trading value fell to below Dhs1bn, compared to Dhs2bn last week.
But despite the decline, three shares went up: National Bank of Umm Al Qaiwain, Sharjah Insurance and Union Insurance, hitting its maximum limit of 10%. Speculators continued to push the price of Ras Al Khaimah Cement, which rose 0.27%.
Doha: Eight shares support the rise
Eight of the 40 traded shares were behind the Qatar Securities Exchange's record rise, taking 72% of the 26 million shares traded, valued at QR1.4bn.
Al Rayan Bank traded 5.8 million shares, rising by 1.3%, while Qatar Shipping registered the highest rise (7.1%) to QR151.10 per share, after Bilton Investment issued a report saying the share could reach QR182.59.
Kuwaiti real estate companies support the index
The real estate and industrial sectors pushed the Kuwait Stock Exchange (KSE) to a new record high, approaching 15,300 points, valued at KD205m on volume trading of 464.8 million shares.
Analysts at the KSE said spin off operations by offshore Kuwaiti real estate firms, especially in Dubai, encouraged financial portfolios to buy up shares, driven by the belief that realtors will post strong profits in the second quarter.
Saudi Arabia, Muscat and Bahrain down
The Tadawul dipped after its strong rise over the past week, which analysts said was to be expected after its positive run.
But despite declining, the Saudi market kept its momentum in terms of a trading value of SR15.2bn, including SR6.7bn (44%) on Al Inmaa Bank – which floated last Tuesday - which still finished the day down 1.2% to SR19 share.
The petrochemical sector, led by Sabic, and telecom sector, led by Mobily, rose 3.1%, allowing the index to retain some of its strength.
Insurance shares, which are known to be speculative, registered huge losses, led by Arab Popa Insurance. It declined by 7.4%, with Re-Insurance and Sanad both down 5.2% and 5% respectively.
Banks listed in the Saudi market fell, except for Arab National Bank and SABB, which rose by 2.6% and 1.9% respectively.
The Muscat market declined 0.50%, but still managed to stay above the 12,000 points mark it hit after strong trading last week.
The pressure came from losses among leading shares, including Omantel (down 2.2%), Muscat Bank (down 1.9%), Al Ahli Bank (down 1.6%) and Al Anwar Holding (down 2.3%).
Bahrain registered the biggest loss among the four declining markets.
Even so, overall trading jumped to BD6.4m on a volume of 18 million shares. Al Salam Bank dominated 81.6% of the total traded shares, trading 14.7 million shares, but it still closed unchanged.