Property-related stocks rose, helping Dubai’s index DFM end a three-session losing streak as investors gave a modest response to overnight global market gains.
Emaar Properties climbed 2.1 percent, Union Properties gained 0.8 percent and builder Arabtec rose 2.3 percent.
“We’re seeing a muted response to gains on global markets overnight – volumes are still low and we’re correlated more to the downside than the up,” said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
“There isn’t much international cash coming back in and that is keeping a lid on prices.”
The index climbed 1.2 percent to 1,528 points.
Abu Dhabi’s benchmark ADI ended flat as only one of its 12 largest stocks advanced. Aldar Properties climbed 0.4 percent.
Global stocks took a breather on Tuesday, consolidating strong gains made the previous day, when most indexes climbed back near three-month highs, while the US dollar index slipped again to a three-month low.
Industries Qatar (IQ) made its largest gain for nearly two months and other bluechips also advanced, helping Doha’s index QSI ended higher for a fifth day in six as international buying increases.
IQ climbed 2.4 percent, a day before the release of its quarterly earnings, Qatar National Bank rises 1.3 percent and Commercial Bank of Qatar gained 2.2 percent.
International investors are buying into Qatar, said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading. Volumes more than double from the day before, but remain low by historical standards.
The index climbed 1 percent to 7,104 points, its highest close since June 21.
“From a technical point of view, 7,000 points was an important level to break,” said Mohamed Abu Ghoush, head of equities brokerage at Ahli Bank, speaking before the market close.
“That was the first positive sign. Another is that the index closed above this level for the past four sessions.”
Bank Muscat hit an 11-week high after breaking above a key resistance level, helping Oman’s index MSI end higher for a fifth session in six.
Bank Muscat climbed 2.1 percent to 0.845 rials, with 0.84 rials a strong resistance level, said Gunjan Gupta, head of research at Oman Arab Bank.
Last month, Bank Muscat reported an 87 percent rise in second-quarter profit, falling short of estimates.
“We believe that the net profit will grow at 20.4 percent YoY in 2010 growth is mainly due to a major slow down on the provisioning, despite assuming 100 percent provisioning for Dubai World exposure which amount to 19.3 million rials,” Global Investment House wrote in a research note.
The index climbed 0.3 percent to 6,349 points.
“We expect in near term the next target level should be at 6,477 points, added Gupta.
“Investors are now waiting for heavyweight service sector results – Renaissance, Galfar and Omantel.”
Renaissance Services ended flat, while Oman Telecommunications Co (Omantel) dropped 0.5 percent and Galfar Engineering added 1.4 percent.
Saudi Basic Industries Corp (SABIC) climbed to a three-week high as oil price gained bolster sentiment in the world’s top crude exporter.
SABIC climbed 1.1 percent and affiliate Yanbu National Petrochemical Co’s (Yansab) gained 1.6 percent.
Oil was trading at $81.21 a barrel at 0811 GMT, having broken above $80 a day earlier for the first time since early May as upbeat US earnings and manufacturing data bolster expectations for energy demand.
Petrochemical producers are seen as a play on global trade, so with optimism increasing about a world economic recovery, these stocks are attracting buyers.
Other heavyweights edged higher. Samba Financial Group climbed 0.8 percent and Saudi Electricity Co added 0.7 percent.
Bluechips were seen stable, with investors awaiting Friday’s US unemployment figures before making any major moves, said Hesham Tuffaha, Bakheet Investment Group head of research.
“Worldwide, markets will be watching and waiting for these figures,” said Tuffaha.
“I think the Saudi market will be stable in the range between 6,200 and 6,300 points.”
The index climbed 0.6 percent to 6,370 points.
Zain hit a 10-week on renewed expectation that Emirates Telecommunications Corp (Etisalat) is considering buying a stake in its Kuwait rival.
Zain climbed 1.7 percent to its highest level since May 27.
Etisalat has signed a non-disclosure agreement with Zain to study its assets, an industry source who did not wish to be identified told Reuters, in what could major shareholder Kharafi’s latest attempt to sell its Zain interests.
Last year, Kharafi agreed to sell a 46 percent stake in Zain at 2 dinars per share, but this deal subsequently fell through.
“There are new rumours that Etisalat will buy shares from Kharafi in Zain – no price has been mentioned and we’re seeing some speculation in Zain today,” said Essa Al Hasawi, assistant manager at Zumorroda Investment Co in Kuwait.
Kuwait’s index KWSE edged up 0.02 percent to 6,625 points.
Oil prices extended three-month highs towards $82 on Tuesday, tracking gains in Asian equities following strong bank earnings and upbeat manufacturing data for industrialised economies a day earlier. (Reuters)
Follow us on
