International lenders did not disclose specificities, but said it was part of global cost-cutting plansNovember 26, 2015 11:32
Gulf markets rise tracking global gains
Rebound may be short-lived, say analysts.
June 14, 2010 2:52 by Samuel Potter
Most Middle Eastern bourses rose on Sunday, buoyed by international markets, but the rebound may be short-lived in the absence of major positive catalysts, traders said.
Qatar and Dubai were the strongest regional performers, each bourse gaining nearly 1 percent, as overall trading volumes exceeded last week’s levels, while Saudi Arabia and Bahrain were the only markets to fall.
“Global markets and oil prices upsurge on weekend led today’s rally. But we believe this is a short-term rebound and the market still needs more triggers for sustainable recovery,” said Osama Ibrahim Al-Qinna, head of brokerage division at Oman Arab Bank.
Following Saturday’s strong showing, Saudi Arabia’s Tadawul All-Share Index (TASI) saw a slight decline on Sunday. Liquidity also dipped to SR 4.08 billion.
Market heavyweight Saudi Basic Industries (SABIC) fell 4.3 percent, which traders attributed to profit taking. SABIC gained 5.1 percent on Saturday.
“However, the important thing today was the market still closed above the 5-day moving average, which is an important indication of the strength of the market,” the Financial Transaction House (FTH) said in its daily market commentary.
In Sunday’s trading, five of the 15 sectors saw gains ranging from 0.01 percent in the Agriculture & Food Industries to 1.30 percent in Banks & Financial Services. The losses ranged from 0.26 percent in the Transport sector to 2.40 percent in the Petrochemical Industries sector. Overall market breadth was negative, with 40 advancers and 79 decliners recording an AD ratio of 0.51, FTH said.
In Qatar, the index hit its highest level since May 24.
“Qatar is the epitome of energy rich GCC nations, with a large appetite for real estate investment, fuelled by the rapid growth in oil and gas revenues over recent years,” Jones Lang LaSalle said in a report on Sunday.
“With a relatively small domestic real estate market, much of this interest is being directed towards real estate markets overseas, making Qatar an increasingly important player in terms of global real estate capital flows,” it added.
Dubai’s index rose 0.9 percent led by real estate stocks. Emirates NBD fell 0.4 percent after ratings agency Moody’s downgraded the local and foreign currency debt and deposit ratings of the bank.
In Kuwait, Agility shed 6 percent after paying out its dividend.
Egypt’s Orascom Telecom fell another 0.5 percent and dominated trade by turnover. Last week, the stock fell 5.3 percent after talks with South Africa’s MTN Group collapsed.