Tadawul gains strength

31/08/2016 05:08 AST

Most Gulf stock markets rose on Tuesday in response to firmer oil prices and global bourses but trading turnover in Saudi Arabia and Dubai was low, suggesting many investors did not expect an extended rally and were staying away.

Saudi Arabia’s index gained 1.0 percent in a broad rise, with rising stocks outnumbering losers by 119 to 22. But the market recorded its second smallest daily volume this year. The smallest was on Aug. 21.

Major lender Al-Rajhi Bank, which has dropped sharply in recent weeks because of concern about bad loans due to Saudi Arabia’s economic slowdown, rose 2.3 percent. Al-Tayyar Travel Group surged 4.3 percent. The company offers services to Islamic pilgrims for Haj, which starts this year on Sept. 9.

Qatar’s index rose 0.5 percent, having been supported supported over the last several weeks by FTSE’s plan to include some major Qatari stocks in its secondary emerging market index. An announcement of its picks is due after the close on Wednesday.

Masraf Al-Rayan, which could make FTSE’s list, rose 1.8 percent. Dubai’s index rose 0.5 percent in thin trade, with all 10 of the most active stocks gaining. GFH Financial , the most heavily traded stock, surged 4.3 percent to its highest level in 21 months. But courier Aramex, which had jumped 2.3 percent on Monday, retreated 2.2 percent. Abu Dhabi edged down 0.02 percent with real estate firms attracting the most activity. Aldar Properties rose 0.7 percent after it said it would start construction of a new residential development in Abu Dhabi, while Eshraq Properties jumped 6.3 percent.

In Egypt, the index added 0.6 percent as Global Telecom jumped 5.3 percent and investment bank EFG Hermes added 3.1 percent after Natixis, which recently bought an 11.8 percent stake in EFG from Dubai Financial Group, appointed representatives to EFG’s board.

El Sewedy Electric Co. rose 2.1 percent after posting a second-quarter net profit of 893 million Egyptian pounds ($101 million) versus 532.9 million pounds in the same period a year earlier.

Arab News