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Dubai surges to 4-month high; Gulf markets up | ASHARQ AL-AWSAT English Archive 2005 -2017
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DUBAI, (Reuters) – Gulf markets ended higher on Sunday, with Dubai’s index hitting a four-month high following strong quarterly results, in what traders said could be a new upward phase for the emirate’s market.

Markets in Egypt, Bahrain and Oman were shut for a Muslim holiday.

Real estate and related stocks helped lift Dubai’s index 2.2 percent to its highest close since Sept 21.

Emaar Properties rose 3.2 percent and Deyaar jumped 4.4 percent after the developer reported on Sunday a swing to a full-year profit on Sunday.

“In the last week, we started to see positive results, some generous corporate actions from banks, plus fresh liquidity into the market from institutional investors, local and international,” said Samer Al-Jaouni at Middle East Financial Brokerage Co.

“The market has already entered a new stage now, and the new liquidity has improved volumes. With better sentiment from global markets and local news supporting, there might be a strong rebound ahead.”

Dubai Financial Market advanced 2.9 percent, and top lender Emirates NBD climbed 4 percent.

Trading in Abu Dhabi was mixed, with property stocks advancing, and banks declining as the benchmark inched up just 0.04 percent.

Aldar Properties rose 4.4 percent, while National Bank of Abu Dhabi slipped 0.5 percent.

In Qatar, the index gained 1 percent, with Qatar National Bank jumping 1.9 percent and Commercial Bank of Qatar rising 0.9 percent.

“The banking sector will help lift the market back to an uptrend – there was some profit-taking for banks recently but then a bounceback,” Jaouni said.

“Investors are waiting for IQCD (Industries Qatar ) dividend – this might give the market a new trend. But for the time-being, we expect market to stay in the range of 8,000 and 8,800 points.”

In Kuwait, financial markets were steady after the Islamist-led opposition won control of parliament in an election.

The main benchmark, which has been edging up from multi-year lows over the past three weeks, ended 0.03 percent higher.

“The main question after the elections is whether anybody who has been newly elected will actually bring about any change,” said a Kuwait-based equities trader.

“There is an indirect impact on market sentiment, but so far there is no direct impact.”

Investors are cautiously awaiting the release of earnings reports to start in earnest.

“Lots of investors are still on the sidelines and trying to evaluate where the market if going from a numbers perspective. Within the next 2-3 weeks, there will be a lot more earnings,” the trader added.

Saudi Arabia’s index managed to extend gains made in Saturday’s session after a sluggish start of trading. Telecoms stocks attracted buyers, with Saudi Telecom Co rising 1.4 percent and Zain Saudi Arabia up 1.3 percent.

Heavyweight Saudi Basic Industries Co (SABIC) climbed 0.8 percent, helping lifting the index 0.4 percent.