Gulf markets rise on improved sentiment

SHARES RISE: Dubai Financial Market rose on Wednesday as bargain hunters dominated trading. (Getty Images)

Shares of Emaar Properties lifted Dubai's main index to a higher close on Wednesday, while Emirates Telecommunications Corp (Etisalat) dragged Abu Dhabi lower as bargain hunters dominated the market.

Emaar gained 3.03 percent and Arabtec Holding surged 7.94 percent as the benchmark rose 0.98 percent to 2,053 points.

Etisalat and Abu Dhabi Commercial Bank lost 1.89 percent and 2.39 percent respectively, pulling Abu Dhabi's measure down 0.11 percent to 2,880 points.

Al-Rajhi Bank and Saudi Telecom Co (STC) led the main index to end down.

Al-Rajhi fell 3.91 percent and STC slid 7.27 percent, pulling the index down 1.8 percent to 4,880 points.

Oman's main index closed higher, buoyed by the banking sector, as investors build on improved sentiment in recent sessions to venture back into the market.

In Muscat, Ahli Bank rose 6.74 percent and National Bank of Oman added 7.33 percent, helping the overall index gain 1.38 percent to 6,035 points.

"At the end of the session, we saw an acceleration of buying but volumes remain still average," said Adel Nasr, local brokerage manager at United Securities in Muscat.

"But at least we see people's sentiments are improving and they're increasing their positions in the big stocks."

Nasr said investors are starting to feel confident that, aside from Saudia Arabia and Dubai, regional markets are steadying and may start to see gains.

Kuwait's move to overhaul monetary policy tools to boost liquidity is also helping investor confidence, Nasr adds.

Kuwait's index rose 2.66 percent to close at 8,811 points as banks gain. Commercial Bank of Kuwait was up 6.67 percent and United Gulf Bank gained 4.76. Mobile Telecommunications Co surged 8.16 percent.

In Qatar, the Doha index edged up 0.19 percent to close at 5,760 points and Bahrain's benchmark gained 1.22 percent to close at 2,026 points.

Gulf stock markets were expected to open mixed on Wednesday after overnight losses in Asia.

"There are a lot of bargain hunters coming into the market," said Parvez Khan, head of investment banking at Commercial Bank of Qatar.

"The selling pressure has eased, we are not seeing panic anymore as people have come to more or less understand the situation. The pricing level is very attractive."

On Tuesday, Gulf bourses ended mixed, with Qatar, Muscat and Abu Dhabi rising, while Dubai slipped more than five percent, led by a 10 percent plunge in shares of Emaar Properties in line with global markets.

Saudi Basic Industries Corp plunged 9.83 percent, pulling the main index to close lower by 3.93 percent. (Reuters)

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