Gulf markets rebound in line with global equities, oil

19/11/2014 05:44 AST

Markets in the Middle East pared some of the previous day’s losses yesterday as global equities and oil prices rebounded and retail investors started buying stocks again.

Brent crude rose back towards $80 a barrel yesterday on speculation Opec could cut output at its meeting on November 27, while European shares rose on hopes of more economic stimulus measures in Japan.

Dubai’s index added 1.4% as contractor Arabtec Holding jumped 3.6% and heavyweight developer Emaar Properties gained 2.3%.

Abu Dhabi’s benchmark edged up 0.7% as both Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank jumped 3.2%.

The main Saudi index added 0.9%, having dropped 2.8% on Monday. Food maker Savola Group and petrochemicals giant Saudi Basic Industries were the main supports, up 2.5 and 2.2% respectively.

Shares in National Commercial Bank (NCB), the kingdom’s biggest lender, dropped 5.8% to 61.50 riyals after surging by the daily 10% limit for four sessions in a row since its listing on November 12. The stock has gained 36.7% from the 45 riyals which local retail investors paid in the initial public offer.

Egypt’s benchmark rose 0.6%, helped by Commercial International Bank, up 1.3%.

Kuwait’s index slipped 0.03%. Commercial Bank of Kuwait dropped 2.9% after Kuwaiti firm Investment Dar made a renewed legal push to secure ownership of a stake in Boubyan Bank which it sold to CBK in 2008, with the right to buy it back.

Elsewhere in the Gulf, Oman’s index fell 0.01% to 7,029 points, while Bahrain’s measure closed flat at 1,451 points.

Reuters