Reuters
Dubai
Middle Eastern stock markets were mixed yesterday as Dubai bounced back from the previous day’s losses while Saudi Arabia’s index was almost unchanged as investors awaited the release of the kingdom’s state budget, expected in the coming days.
The Saudi index fluctuated narrowly before ending down 0.01% at 6,930 points. Trading volume was modest as many investors were unwilling to trade without knowing the size of spending cuts expected in the budget.
However, petrochemical producer Saudi Basic Industries fell 1.7% to 84.75 riyals, heading towards its December low of 83.25 riyals.
“Current market sentiment is fragile and people are not willing to rotate into sectors that are heavily dependent on government spending or those that are export-oriented,” said Mohammad al-Shammasi, head of asset management at Riyadh-based Derayah Financial.
Dubai’s index rebounded 2.5% to 3,101 points, gathering momentum on higher volumes in the final hour of trade as bargain buyers bought on dips. The benchmark is now 250 points above the year’s low. Gainers outnumbered losers 19 to 7 with all blue chips rising after Sunday’s profit taking sell-off. Emaar Properties and builder Drake & Scull recouped all of Sunday’s losses, rising 3.2 and 3.5% respectively. Both stocks are up over 8% from a week ago.
Abu Dhabi heavyweights Etisalat and National Bank of Abu Dhabi jumped 2.9 and 2.5%. Abu Dhabi’s benchmark climbed 0.9% in its fourth session of gains; trading volume was the second heaviest so far in December. On Sunday, it was the heaviest.
Egypt’s index rose 0.8%, its sixth straight gain, with Commercial International Bank and Orascom Telecom carrying the market higher for a second day.
CIB, the bourse’s largest bank by market value, rose 2.6%. The lender is up 4.6% since Thursday’s close after agreeing to sell investment banking subsidiary CI Capital to Orascom Telecom for 1bn Egyptian pounds ($128mn).
Orascom Telecom, the most heavily traded stock, surged 6.7%; it is up 8.5% since Thursday’s close.
Elsewhere in the Gulf, Kuwait’s index climbed 0.8% to 5,614 points; Bahrain’s index slipped 0.4% to 1,190 points, while Oman’s index advanced 0.9% to 5,404 points.
A woman walks past the entrance to the Dubai Financial Market. Dubai’s index rebounded 2.5% to 3,101 points yesterday.
