Saudi stocks rise 0.3%; Maaden up 6%

26/02/2015 05:31 AST

Most major Gulf stock markets edged up after oil prices gained and the US Federal Reserve indicated it was in no rush to raise interest rates.

Saudi Arabia’s stock market edged up 0.3 percent.

Saudi Mining Company (Maaden) surged 6.0 percent on strong volume to a fresh all-time closing high of SR42.40.

The company started commercial operations at its joint aluminum smelter with US-based Alcoa last September and is set to benefit from strong demand and low costs when compared to European and US operations.

Russia’s United Company Rusal, one of the world’s biggest aluminum producers, forecast a deficit in aluminum supply in 2015 outside China.

Overall trading volume in Saudi Arabia remained relatively low, however, as the market regulator suspended trading in shares of Mobily after another shock revision of its 2014 earnings.

The Mobily debacle is not, however, expected to have a long-term negative effect on the overall stock market or deter foreign investors from coming in when the market begins opening to them in coming months, as Saudi Arabia has a reputation as one of the best-regulated markets in the region.

Elswehere in the Gulf, Dubai’s index rose 0.8 percent, largely because of property stocks. Emaar Properties added 1.3 percent, DAMAC jumped 2.1 percent, Union Properties climbed 0.9 percent and Deyaar rose 1.2 percent.

The real estate sector, where both companies and customers are often leveraged, is particularly sensitive to interest rate movements and a delay in US monetary tightening would be positive for it.

Abu Dhabi property firm Aldar jumped 2.3 percent and was the one of the main supports for that emirate’s index, which climbed 0.2 percent. RAK Properties rose 2.7 percent.

Qatar’s benchmark slipped 0.4 percent as Ezdan Holding dropped 3.7 percent after announcing 2014 results and dividends.

The company proposed a payout of 0.40 riyal per share, up from 0.31 riyal it paid for 2013, but some investors may have hoped for a bigger increase.

Reuters