Bank Nizwa shares jump on Oman debut; Saudi, UAE advance

Bank Nizwa, Oman’s first listed Islamic bank, surged on its market debut, although traders warn selling pressure from retail investors could curtail further gains in the coming days.

The stock ended 12.8% higher, with 87mn shares changing hands. The most shares traded on any day on the Muscat benchmark index in the last two years was 47.2mn. Bank Nizwa is not yet included in the index.

“It was very impressive. But there was huge selling pressure on the stock, with a lot of retail investors offloading today,” said Adel Nasr, brokerage manager at United Securities.

The bank raised 60mn Omani rials ($155.9mn) from its 40% IPO last month, which attracted bids worth more than 11-times the size of the issue during the subscription period.

The index dipped 0.5%, ending a three-session winning run, as Ominvest, which slumped 5.6%, dragged.

Qatari shares slumped to a fresh eight-month low, falling 0.2%. The exchange has finished down in eight of its last nine sessions.

Saudi Arabia’s index made its largest one-day gain since April 21, advancing 1.3%.

Kingdom Holding jumped 5.5% to its highest close since May 15. Al Rajhi Bank rose 2.4% and Nama Chemicals snapped a four-session losing streak to leap 9.9%.

Egypt’s benchmark index shed 0.4% in low volumes amid investor caution before a presidential run-off vote that has polarised the nation and continued political haggling over a new constitution.

In Abu Dhabi, the index gained 0.6%.

Etisalat climbed 2.8% to a 10-week high, extending gains since a local Arabic-language newspaper said the UAE government may soon allow its shares to be owned by foreigners - a story the telco denied in a statement.

Aldar Properties and Sorouh Real Estate added 1.8 and 1% respectively. The pair have appointed advisers for their proposed merger and begun a due diligence process which will take ‘a number of months’, a statement from Aldar said after the close of trading.

Dubai’s benchmark rose for a fourth session, up 0.2%.

Kuwait’s index rose 0.2%, its second gain since hitting a 16-week low last week. Bahrain climbed by 0.5%, extending gains for a third session.