Gulf stocks mixed as concerns grip markets

14/06/2017 02:08 AST

Gulf stock markets were mixed on Tuesday as Qatar fell back, still affected by other Gulf states’ sanctions against Doha, while Abu Dhabi’s Dana Gas soared on its proposal to restructure a $700 million sukuk.

Saudi Arabia’s index was almost flat in thin trade but Gulf Union Cooperative Insurance jumped by its 10 percent daily limit after saying it had cut its accumulated losses to 20 percent of capital from 33.5 percent.

Saudi stock benchmark Tadawul All Share Index edged down 0.03 percent to 6,821 points. Qatar’s index fell by 0.4 percent to 9,095 points but remained more stable than when the sanctions were announced last week.

Qatar National Bank, the region’s largest lender, fell by 1.3 percent. Like other Qatari banks, it has been hit by concern that the economic and diplomatic boycott imposed by Saudi Arabia and its allies could reduce its access to foreign funding. However, some other lenders held firm, with Doha Bank, up 0.2 percent.

Logistics company Gulf Warehousing, which had plunged after the boycott started, rebounded 6.9 percent to 48.80 riyals.

Though Qatar’s trade has been disrupted, it has kept shipments moving thanks to measures such as changing shipping routes to operate via Oman instead of the United Arab Emirates.

Dubai’s index rose 0.4 percent to 3,442 points as Emaar Properties rose 1 percent, building on gains after last week’s announcement of plans to spin off its local real estate business.

In Abu Dhabi, the index climbed 0.6 percent to 4,538 points as Dana Gas jumped by its 15 percent daily limit to 0.69 dirhams, its highest level since late 2014. Trade in the stock was at its heaviest for three years.

The company said it was proposing to restructure its $700 million of outstanding sukuk at much lower profit rates because it had discovered the paper was «unlawful» in the United Arab Emirates — a claim that some creditors said they would contest.

Kuwait index edged up 0.03 percent to 6,777 points.

Bahrain index rose 0.4 percent to 1,327 points.

Oman index was flat at 5,314 points.

Egypt index rose 0.3 percent to 13,531 points.

Saudi Gazette