Gulf stock markets were mixed yesterday, supported by strong global equities and oil prices, while Egypt surged on the back of the success of Cairo’s international sovereign bond issue.
The Saudi index edged up 0.1% though losing stocks outnumbered gainers by 99 to 52.
Petrochemical blue chip Saudi Basic Industries added 1.0%, while telecommunications firm Zain Saudi rose 2.9%.
Nama Chemicals jumped 9.6% on announcing the main elements of a recovery plan after accumulated losses exceeded 75% of its capital.
The plan includes eventually increasing capital to finance production of specialty chemical products and boost capacity, and the sale of assets of an investment affiliate.
Construction firm Abdullah Abdul Mohsin al-Khodari and Sons fell 3.2% after it said the total value of its delayed work as of December 31 was 312.7mn riyals ($83.4mn), only a slight improvement from the previous quarter.
In a statement, international equity index compiler MSCI said it welcomed reforms of the Saudi stock market and reiterated it could launch in June a study on whether to include Saudi Arabia in its emerging market index.
Kuwait’s index, which has surged more than 19% this month, gained 0.5% in heavy trade, although decliners outnumbered advancers by 55 to 53.
On Monday the government plans to announce details of its long-term economic development plan, which could be positive for the stock market if gives more impetus to big infrastructure projects.
Dubai’s index rose 0.6% in a broad rally, with all 10 of the most heavily traded stocks gaining.
GFH Financial, the most active stock, rebounded 4.9% after plunging 9.7% on Wednesday.
Real estate firm Deyaar, which dropped 5.0% on Wednesday after its fourth-quarter profit more than halved, recovered 1.6%.
Egypt’s market, reopening after a public holiday on Wednesday, climbed 1.6% in moderate volume after news the government was set to sell $4bn of Eurobonds in three tranches, raising twice as much as targeted when it began a roadshow last week, and at lower yields than initially expected.
It was a vote of confidence from foreign investors in the country and confirmation that Cairo has access to international capital markets to cover its deficits.
Investment firm Qalaa Holdings, which has been volatile in recent days, rocketed 9.6%.
Alexandria Flour Mills and Bakeries Co surged 3.3% after saying its first-half net profit rose to 24.4mn Egyptian pounds.
Elsewhere in the Gulf, Oman’s index fell 0.2% to 5,751 points, while Bahrain’s index edged down 0.02% to 1,300 points.
Traders follow shares at the the Kuwait Stock Exchange (KSE) in Kuwait City. Kuwait’s index, which has surged more than 19% this month, gained 0.5% yesterday in heavy trade, although decliners outnumbered advancers by 55 to 53.
