We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 28 Nov 2010 11:50 AM

Font Size

- Aa +

Petrochemicals stocks lift Saudi index, Dubai at 10 week low

Fall in UAE stocks a 'reflection of what is happening in global markets'

Petrochemicals stocks lift Saudi index, Dubai at 10 week low
Musa Haddad, head of MENA equity desk at NBAD says investors are expected to stay on the sidelines until things become clearer in the region and in the global markets. (Getty Images)

Petrochemicals stocks lead a late rally as Saudi Arabia's index closed slightly higher in a day of lacklustre trading.

Saudi Basic Industries (SABIC) gained 0.5 percent and the petrochemicals index added 0.4 percent.

The benchmark edged higher by 0.2 percent to end at 6,310 points, its highest close since Tuesday.

Dubai's index touched a 10 week low amid falling volumes, as uncertainties in global markets kept most investors on the sidelines.

The benchmark dropped 1.4 percent, closing at 1,660 points, its lowest close since Sept 16.

Dubai builder Arabtec was one of the biggest losers, dropping 2.2 percent to its lowest close since Sept 6. Courier firm Aramex lost 4.3 percent.

"Very low volumes are traded as investors are worried about the performance of international markets,"said Rami Sidani, head of investment at Schroders Middle East.

"The fall in UAE stocks is a reflection of what is happening in global markets," he added.

Developer Aldar Properties led the decline in Abu Dhabi as it drops 2.7 percent. The index ended lower by 0.3 percent at 2,750 points.

Telecoms operator Zain was the main drag as Kuwait's index slumped to a two month closing low.

Zain dropped 1.4 percent, having earlier slipped to a one week intraday low.

HSBC pulled out of the arranging group for Zain's proposed $1.5bn loan, leaving six banks to arrange the financing, sources said on Friday.

The benchmark fell 0.9 percent ending at 6,869 points, its lowest finish since Sept 28.

Qatar's dropped 0.8 percent at 8,111 points, a two week low, as losers outnumbered gainers 18 to zero.

Doha Bank fell 1.4 percent and Commercial Bank of Qatar slid 1.5 percent.

Oman's Bank Muscat climbed to its highest level in more than two years as gains in its London listed global depository receipts (GDR) spurred foreign investors to buy the lender's shares on the local bourse.

Bank Muscat rose three percent, touching its highest since September 2008.

"Bank Muscat is rising primarily because of the GDR prices," said Adel Nasr, United Securities brokerage manager.

"However, I do not expect it to go much higher," he added.

The Oman index gained 0.5 percent, reaching 6,582 points.

Arabian Business: why we're going behind a paywall

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.