Kuwait stands out in GCC with oil near $50

dubai — Major stock markets in the Middle East fell on Wednesday, following international bourses lower as crude oil prices traded down near $50 a barrel, but Kuwait jumped in heavy trading by local retail investors.

The Saudi Arabian index lost 1.2 per cent in low turnover, with all but one of the 14 petrochemicals makers falling by at least one per cent and bellwether Saudi Basic Industries dropping one per cent.

Insurer Gulf Union was down 3.2 per cent after its board recommended reducing its share capital to SR150 million ($40 million) from SR220 million by cancelling seven million shares.

In recent days several small insurance companies have announced plans to reduce losses and improve their capital structures by reducing share capital. However, many investors expect tough competition in the sector to drive merger activity in the near future and are exiting positions until there is more clarity.

Dubai’s index fell by 0.6 per cent. Builder Arabtec, the most heavily-traded stock, dropped by 0.7 per cent and Dubai Financial Market, the only listed exchange in the Gulf, lost 2.3 per cent.

In Abu Dhabi, the index retreated 0.7 per cent, weighed down by profit-taking in some of the bluechip stocks that had risen in the previous session. Real estate developer Aldar Properties retreated by 0.8 per cent and Abu Dhabi Commercial Bank was down 1.3 per cent.

In Cairo, the blue-chip index fell 0.2 per cent in thin trade as three fifths of traded shares declined.

In stark contrast to the rest of the region, Kuwait’s main index jumped by two per cent, with most trade focusing on small and midsized companies favoured by shortterm investors. Construction materials provider National Industries rose by five per cent. The index is now up 22 per cent since the start of the year.

Qatar’s index declined 0.9 per cent to 10,396 points. —