DIB supports Dubai index
Most Gulf markets fall
DUBAI, Nov 27, (RTRS): Most Gulf stock markets extended the previous session’s losses on Wednesday following a rebalancing of MSCI’s benchmark emerging market index, but gains in Dubai Islamic Bank helped Dubai rebound.
Global index provider MSCI on Tuesday completed an increase in the weighting of mainland Chinese stocks, or A shares, in its widely followed emerging markets benchmark.
Most Gulf stock indexes slipped into negative territory after that as passive investors withdrew funds from the region, which now accounts for a smaller portion of the index.
The benchmark Saudi index led the losses and declined by a further 0.3% on Wednesday with financials leading the way. Al Rajhi Bank and Saudi British Bank were down 1% and 3.4% respectively.
The index rallied for five days last week, triggered by a lending boom as small investors sought funds to invest in Saudi Aramco’s public listing.
Fitch Ratings said on Tuesday that Aramco’s IPO would have a limited direct fiscal impact in Saudi Arabia but could help offset renewed government austerity measures by allowing the Public Investment Fund to boost domestic investments.
Dubai’s index closed up 0.2% with Dubai Islamic Bank (DIB) gaining 1.7%, a day after it called a shareholders meeting on Dec 17 to approve the acquisition of Noor Bank. The sharia-compliant lender’s unit Dubai Islamic Insurance and Reinsurance rose 4.6%, while Emaar Properties was up 1.2%. The Abu Dhabi index edged down 0.1% with Abu Dhabi Commercial Bank dropping 1% and telecoms firm Emirates Telecommunications slipping 0.4%.
The index found some support from First Abu Dhabi Bank and National Bank of Ras Al Khaimah which closed 0.1% and 3.3% higher respectively.
The Qatari index lost 0.2% with Qatar International Islamic Bank down 5.3% in its biggest fall since March and Mesaieed Petrochemical down 0.8%. Egypt’s blue-chip index eased 0.2%, stretching a losing streak to an eighth consecutive session, led by a 2.7%slide in EFG Hermes and a 2.5% fall in El Sewedy Electric.