18/08/2010 00:00 AST
Middle East indexes moved less than 1% in lacklustre trade yesterday.
Dubai’s benchmark rose 0.9% to 1,487 points. Abu Dhabi’s index edged up 0.03% to 2,495 points.
Kuwait’s measure rose 0.1% to 6,655 points.
Saudi Arabia’s index edged up 0.06% to 6,162 points.
Oman’s index rose 0.02% to 6,277 points. Bahrain’s index climbed 0.4% to 1,416 points.
National Bank of Kuwait surged 4.8% as investors bought shares to participate in the lender’s 10% capital increase. NBK ended at 1.32 dinars, its highest finish since Nov. 30, 2008.
“NBK’s results were positive and so investors could be buying the stock to participate in the rights issue,” said Naser al-Nafisi, general manager for Al Joman Center for Economic Consultancy in Kuwait.
The rights issue, which was approved in March, will raise $113mn and is priced at 0.5 dinar, a significant discount on yesterday’s closing price, although this is likely to fall after dilution.
In July, NBK reported a 10% rise in second-quarter profits.
Dubai’s Emaar Properties and Emirates NBD rose 1.9 and 2.1% respectively.
“Dubai is looking stable, but I wouldn’t call it great and it should continue to move sideways,” said Vyas Jayabhanu, head of investments, Al Dhafra Financial Broker.
“Earnings were lukewarm, with some coming below expectations and others about average. There is no catalyst for investors to start picking up shares aggressively.”
Dubai’s index climbed 0.9% in its largest advance for two weeks, but this rise is unlikely to herald a shift from its sideways trading range.
“Markets should be flat to lower on nearly non-existent volumes,” said a Dubai trader who asked not to be identified.
“What’s happening is not a result of only Ramadan and summer holidays, it’s more than that and is going to run until the end of year,” the trader added, referring primarily to UAE bourses.
Bank Muscat rose 0.5% to a two-month high, helping Oman’s index end a four-session losing run.
“It’s a problem of liquidity in the market - the investor base is very small, although some volumes are coming into Bank Muscat, Jazeera Steel and Voltamp Energy,” said Joice Mathew, United Securities head of research.
“People are hoping for a breakout in the market, but without increased volumes this wouldn’t be sustained.”
Voltamp and Jazeera Steel climbed 2.2% and 0.3% respectively.
Reuters
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