Saudi stocks sustain upward momentum

04/01/2011 00:00 AST

Saudi Arabia’s Tadawul All Share Index rose 0.31 percent at 6,676.66 Monday as oil prices continue the upward trek, spurred by expectations economic recovery will fuel energy demand and as market bulls set their sights on $100 a barrel.

Elsewhere in the Gulf, Qatar’s stocks climbed to the highest level in more than two years as nominal gross domestic product increased.

Dubai’s gauge declined for the first time in four days.

The QE Index gained 1.5 percent to 8,872.53, the highest since September 2008 in Doha. Abu Dhabi’s ADX General Index rose 0.4 percent. Oman’s MSM30 Index advanced 0.3 percent. However, Bahrain’s measure fell 0.3 percent and Kuwait’s gauge slipped 0.1 percent.

In Dubai, shares declined on investor speculation gains following Nakheel’s progress in renegotiating at least $10.5bn of debt are overdone given the outlook for profit growth.

Dubai’s DFM General Index lost 0.3 percent to 1,663.29. The measure rallied 4.1 percent the previous three days, leaving the gauge’s 30 members valued at an average 15.7 times earnings as of Jan. 2. That was the highest since Nov. 1 and compared with multiples of 12.6 for the shares in Abu Dhabi’s measure.

"The market is going through partial profit taking," said Mohamed Khaled Hafez, relationship manager at Prime Emirates LLC in Abu Dhabi. "Nakheel news accompanied by oil prices were the main reasons for the recent market gains."

Nakheel said on Dec. 30 it received funds from the Dubai government to repay Islamic bonds maturing this month. The developer of palm-shaped islands off Dubai’s coast said January 2 it paid AED3.9 billion ($1.1 billion) to trade creditors as the company seeks to renegotiate terms on its loans and bills.

Emirates NBD, the UAE’s biggest bank, tumbled 6 percent, the most since November 2007. The shares soared 8 percent Sunday.

Saudi Gazette