Gulf slides but closes well off lows

Qatar gives up last week’s FTSE-related gains

DUBAI, Aug 23, (RTRS): Most major Gulf stock markets fell on Tuesday after Brent crude oil dropped back below $49 a barrel, but most closed well off their lows as investors bought blue chips in late trade.

The Saudi index closed 0.2 percent lower at 6,096 points, extending Monday’s 1.7 percent slide. But gainers slightly outnumbered losers 77 to 74 and the index bounced from an intra-day low of 6,063 points, holding minor technical support on the April low of 6,066 points.

Petrochemical blue chip Saudi Basic Industries rose 0.3 percent and Al Rajhi Bank added 0.5 percent. Insurer Alinma Tokio rose 1.5 percent after the central bank approved one of its new products.

Dubai’s index closed with a slight 0.04 percent decline at 3,534 points, off a low of 3,511 points. GFH Financial, which on Monday announced tentative plans to expand by taking a majority stake in a Bahraini bank, was the most heavily traded stock and jumped 5 percent.

Construction company Drake & Scull International, which had dropped 10 percent since it announced a big second-quarter loss in mid-August, was the second most active stock and closed flat.

A top executive of the company told Reuters that it had asked advisers for proposals to review its business and find strategic investors.

Abu Dhabi’s index outperformed the region, rising 0.6 percent as First Gulf Bank climbed 1.7 percent.

Qatar’s index dropped 0.9 percent and unlike the other markets, closed on its intra-day low. It has now erased all of the gains posted last week when stocks surged on hopes that they would be included in FTSE’s emerging markets index when it upgrades Qatar to emerging market status next month.

In Egypt, the index slipped 0.7 percent in thin trade as government sources told Reuters that authorities plan to eliminate fuel subsidies within three years and aim to increase fuel prices to 65 percent of their actual cost this financial year.

The reform would help Egypt to secure a badly needed $12 billion loan from the International Monetary Fund but could dent consumer spending and corporate profits in the near term. Commercial International Bank lost 1.2 percent.

MENA Capital’s Admiral Fund said that the IMF loan and reforms would be positive for Egypt but it was in no hurry to raise its exposure to the country.

Saudi Arabia

The index fell 0.2 percent to 6,096 points.

Dubai

The index edged down 0.04 percent to 3,534 points.

Abu Dhabi

The index rose 0.6 percent to 4,535 points.

Egypt

The index slipped 0.7 percent to 8,187 points.

Qatar

The index dropped 0.9 percent to 11,116 points.

Kuwait

The index rose 0.1 percent to 5,449 points.

Oman

The index fell 0.4 percent to 5,849 points.

Bahrain

The index gained 0.1 percent to 1,153 points.