Most ME stocks gain in line with global equities

dubai — Most Middle Eastern stocks ended higher on Monday, reflecting positive global market sentiment cheered by a slowdown in coronavirus-related deaths and new cases. Saudi Arabia’s benchmark index gained 1.6 per cent, with Al Rajhi Bank rising 1.3 per cent and oil giant Saudi Aramco increasing 1.4 per cent.

The Abu Dhabi index rose 1.3 per cent, boosted by a 3.5 per cent increase in the country’s largest lender First Abu Dhabi Bank. Abu Dhabi Commercial Bank (ADCB), which has a $981 million exposure to

NMC Health, slid 5 per cent.

In Dubai, the index closed up

0.6 per cent, helped by a 4.7 per cent leap in blue-chip developer

Emaar Properties. The group sold an 80 per cent stake in its cooling business in the prime Dubai Downtown area to National Central Cooling Co for Dh2.48 billion $675.2 million), the companies said on Monday. Tabreed was up one per cent. However, the index’s gains were capped by losses at Dubai Islamic Bank (DIB), which sank 4.7 per cent a day after the Shariah-compliant lender said it has a $425 million exposure to troubled NMC Health, and its subsidiary Noor Bank a further $116 million.

Qatar’s index advanced 2.6 per cent, with all the stocks on the index ending higher including Qatar International Islamic Bank, which jumped 5.3 per cent. Outside the Gulf, Egypt’s blue-chip index closed up one per cent, with Commercial International Bank rising 2.1 per cent. Stock exchange data showed that Egyptian investors were net buyers of the stocks. Meanwhile, Gold prices surged over 2 per cent to a more than three-week high on Monday on expectations of global stimulus measures to counter the economic damage caused by the outbreak of the novel coronavirus. Spot gold was up 1.8 per cent at $1,645.93 per ounce.