Emirates indices gain despite weaker oil

29/12/2014 06:40 AST

Dubai’s index (DFM) jumped 2.3 per cent to 3,975 points on Sunday. The benchmark rose briefly above the psychologically important 4,000 point mark but then gave up some of its gains.

Abu Dhabi’s index rose 1.1 per cent on the back of blue chips such as National Bank of Abu Dhabu NBAD and First Gulf Bank, up 1.5 and 1.2 per cent respectively.

Gulf stock markets rose in early trade on Sunday, shrugging off a fresh decline in the price of oil after Saudi Arabia’s government said at the end of last week that it would maintain spending at high levels in 2015.

Brent crude fell back below $60 per barrel on Friday as the dollar strengthened and as a supply glut in top consumer United States trumped worries about falling exports from Libya. O/R

But in the wake of the Saudi state budget announcement, investors in Gulf appear to be less worried about oil price moves.

The main Saudi index edged up 0.7 per cent as most sectors gained. Saudi Arabian Mining Co (Ma’aden) 1211.SE jumped 4.5 per cent to 32.10 riyals, continuing the leg up which started late last week when Riyad Capital lifted its price target for the stock to 49.00 riyals from 46.00 riyals.

Meanwhile National Commercial Bank 1180.SE, the kingdom’s biggest lender, lost 1.2 per cent after proposing a dividend of 0.65 riyal per share for the second half of 2014, its first since listing last month.

Takween Advanced Industries 1201.SE rose 2.1 percent after saying it was in final talks with food maker Savola Group 2050.SE on buying Savola’s packaging unit. Shares in Savola fell 0.7 per cent.

Shares in retail start-up Marka MARKA.DU surged 5.6 per cent after it said it had agreed to buy sporting goods retail firm Retailcorp from Dubai World for over 220 million dirhams ($60 million). The move will make Marka, which listed this year, operationally profitable in 2015, it said.

Qatar’s bourse .QSI rose 1.6 percent. Property firms Ezdan Holding and Barwa Real Esatate BRES.QA were the main supports, surging 7.3 and 3.2 per cent respectively.

Outside the Gulf, Egypt’s bourse moved little as key stocks were mixed and Commercial International Bank COMI.CA, the biggest listed entity, was flat.

Meanwhile, Chinese shares rose to a new four-year high on Friday, extending recent gains as financial shares jumped on hopes of further monetary stimulus measures, dealers said. The benchmark Shanghai Composite Index soared 2.77 per cent, or 85.06 points, to 3,157.60 on turnover of 488.9 billion yuan ($79.9 billion).

The Gulf Today