Middle East markets edge up; global stocks nosedive

20/11/2014 07:01 AST

Most stock markets in the Middle East edged up on Thursday as oil prices paused in their decline ahead of next week’s OPEC summit and stocks that usually see little trading took centre stage on several bourses.

Dubai’s index (DFM) rose 0.3 per cent, largely on the back of telecommunications operator du, which jumped 3.6 per cent to Dhs5.49 in its highest trading volume for more than six months.

Equity research house AlphaMena highlighted the stock in a note on Wednesday, rating it as a “buy” with a target price of Dhs7.44, a potential upside of over 40 per cent.

Abu Dhabi’s benchmark climbed 0.4 per cent and National Bank of Ras Al Khaimah (RAKBANK) was the most traded stock, jumping 4.0 per cent to Dhs9.45. Trading volume in the stock was the highest in five months.

RAKBANK broke through technical resistance at Dhs9.30, its October high; it faces strong resistance at Dhs10.00, this year’s high, which was hit in August. Saudi Arabia’s main index rose 0.3 per cent as Malath Cooperative Insurance and Reinsurance dominated trading and rose 1.6 per cent.

The firm said this month it had signed an insurance agreement with Abdulatif Al Issa Holding Group which would earn it about 275 million riyals ($73 million) a year in premiums, a sum larger than its current quarterly revenue. The stock has since climbed 56 per cent as trading activity surged to an all-time highs.

Egypt’s index edged up 0.4 per cent, recovering further from last week’s slump. El-Sewedy Electric, the largest listed cable maker in the Arab world, was the main support, jumping 4.2 per cent.

Global stocks

Global stock markets mostly fell on Thursday following soft Chinese and European economic data and ahead of US inflation figures.

In Europe, France’s CAC 40 dropped 1.2 per cent to 4,217 while Germany’s DAX shed 0.6 per cent to 9,414. Britain’s FTSE 100 was off 0.6 per cent at 6,655. Futures pointed to losses on Wall Street. Dow futures and the broader S&P 500 futures fell 0.4 per cent.

The Standard & Poor’s 500 index slipped one point, or 0.1 per cent, to 2,047 as of 10:04 am Eastern time. The Dow Jones industrial average fell 31 points, or 0.2 per cent, to 17,654. The Nasdaq composite added five points, or 0.1 per cent, to 4,681.

Agencies