UAE markets rally to near seven-month highs

STOCK PRICES: The performance of Gulf markets contrasted sharply on Sunday. (Getty Images)

Dubai's index rose for a ninth session and Abu Dhabi's benchmark also advanced as both markets reached near seven-month closing highs.

The benchmark climbed 2.4 percent to 2,073 points, its highest finish since Nov. 17.

Emirates NBD and Dubai Islamic Bank rose 4.8 and 3.9 percent respectively, while property stocks also prospered. Deyaar surged 7.6 percent.

"UAE banking stocks have lagged in this rally and the general sentiment is that liquidity is improving in the banking sector," said Chamel Sahmy, Beltone Financial regional senior sales trader.

More than 1.4 billion shares were traded, the second-highest total since July 1, 2008.

Mashreq Bank - the second-largest stock on the index by market capitalisation - fell 4.9 percent after 917 shares are sold. The stock had been unchanged since March 17.

Abu Dhabi's index rose 1.8 percent to 2,854 points, its highest finish since Nov. 18.

Emirates Telecommunications Corp (Etisalat) surged 5.3 percent and banks also rose. National Bank of Abu Dhabi and First Gulf Bank added 1.9 and 3.2 percent respectively.

Kuwait suffered its largest one-day decline for four months on Sunday as National Bank of Kuwait dropped 4.7 percent.

The benchmark fell 2.1 percent to 8,198 points, its biggest one-day reverse since Feb. 9.

Banks were the major losers as investors cash in from the index's recent rally that saw it surge to a 2009 closing high on Wednesday, before slipping slightly the day after.

"We should see an improvement in second-quarter numbers, with many companies benefitting from the rise in stock prices," said Talal al-Loghani, vice-president for Gulf equity markets at Kuwait Finance and Investment Co.

"This is a short-term benefit and will be more difficult to sustain."

Doha's index closed higher for the fifth session in six, bolstered by Qatar Gas Transport Co (Nakilat), which rose 3.8 percent.

Banks were mixed. Qatar Islamic Bank climbed 0.9 percent, but Doha Bank and Qatar Commercial Bank both fell slightly. The index rose 0.9 percent to 7,377 points.

Bahrain's benchmark fell for a third successive trading day, sliding 0.3 percent to 1,617 points as volumes nearly double from the previous session.

Oman's index ended lower, snapping a three-day winning streak as Bank Muscat fell 4.4 percent to 0.765 rials.

The bank's slump comes after it announced it would auction certificates of deposit worth 15 million rials ($38.7 million) later this month, but Adel Nasr, United Securities brokerage manager says this had little effect on the stock.

On June 1, NBK Capital slashed its fair value on Bank Muscat by almost a quarter to 0.990 rials.

Bank Muscat's woes dragged the index lower, which fell 0.2 percent to 5,705 points.

Smallcaps dominated trading, with ONIC Holding the most active stock as it climbed 2.9 percent.

Saudi Arabia's index ended higher, reversing losses earlier in the day following a late rally in key telecoms and petrochemical stocks, led by Saudi Basic Industries Corp (SABIC).

SABIC climbed 2.1 percent to its highest finish since Nov. 5.

Saudi Telecom Co rose 1.9 percent, tracking sector gains across the Gulf Arab region.

Banks were mixed. Banque Saudi Fransi rose 0.7 percent, but Samba Financial Group lost 0.6 percent.

The index climbed 0.4 percent to 6,009 points. Volumes slumped to a seven session low of 238 million shares

Alinma Bank was the top trader and climbed 1.4 percent. (Reuters)

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READERS' COMMENTS

Classic pumping and dumping
Posted by Geriant, Dubai, UAE on Sunday 7 June 2009 at 10:41 UAE time


Deyaar surged because they lived up to some commitments which were hyped to the hilt by a slew of obedient media coverage of press releases. It is clear that there is pumping and soon to be dumping involved here, because the fundamentals haven't changed. Does anyone who invests in property stock here actually believe the slathering press releases that claim all is well? Fools and their money ...

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