Rebound in oil, global equities lifts UAE but Qatar sags

Dubai's index rose 1.7 percent with Drake & Scull jumping 3.6 percent. Emaar Properties and DAMAC Properties added 3.1 and 2.1 percent respectively
Rebound in oil, global equities lifts UAE but Qatar sags
By Reuters
Tue 16 Feb 2016 12:48 PM

A return of some risk appetite to global equity markets and a recovery in oil prices helped lift UAE bourses in early trade on Tuesday, while Qatar sagged after a sell-off in major blue chips.

Dubai's index rose 1.7 percent with Drake & Scull jumping 3.6 percent. Emaar Properties and DAMAC Properties added 3.1 and 2.1 percent respectively.

Over the past month Dubai's benchmark has outperformed its regional peers, but a week ago it started to lose steam as most companies have already reported quarterly earnings.

"Traders may look to shift to the stable and less volatile stocks until the index breaks over the 3,075 level, the point where we expect the trend will turn bullish again," said a note by Abu Dhabi's NBAD Securities.

In Abu Dhabi, the index was up 0.5 percent with blue-chip lenders Abu Dhabi Commercial Bank and Union National Bank each rising more than 2.0 percent. RAK Properties rose 1.8 percent after falling by the same magnitude on Monday.

Qatar's benchmark fell 0.1 percent after briefy trading up. Qatar National Bank and Ezdan Holding , which make up roughly 35 percent of total market value, were the main drag. The lender and the real estate developer fell 1.5 abd 0.7 percent.

Aamal Co a diversified conglomerate, nosedived 10.0 percent. The company had reported on Monday a 9.7 percent rise in net profit in 2015.

Shares in Kuwait Projects Co (KIPCO), which are usually thinly traded, added 1.9 percent after the Gulf state's largest investment company reported a 10.7 percent rise in fourth-quarter net profit to 15.8 million dinars ($52.9 million). Kuwait's main index was nearly flat.

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