Major Gulf indexes end higher

dubai — Major Gulf bourses rebounded on Tuesday on hopes the coronavirus pandemic was nearing a peak and governments were taking more stringent measures to contain the outbreak.

Saudi Arabia’s benchmark index gained 1 per cent, snapping two days of losses, with Al Rajhi Bank gaining 1.3 per cent and Saudi Telecom rising 2.8 per cent. On Monday, Saudi Telecom extended its agreement for a period of 90 days with Vodafone to acquire the group’s shareholding in Vodafone Egypt. Saudi Arabia, which extended coronavirus curfew indefinitely, has reported 4,934 confirmed cases of COVID-19 as of Monday, with 65 deaths.

Dubai’s benchmark index climbed 2.9 per cent, led by a 3.5 per cent rise in Emirates NBD Bank and a 3.6 per cent increase in sharia-compliant lender Dubai Islamic Bank. In Abu Dhabi, the index increased 1.1 per cent as International Holding surged 13.1 per cent.

Attractive P/E ratio

The UAE stock markets have maintained their competitive edge in the Gulf and Middle East region over the past period, as their average Price Earnings Ratio (P/E Ratio) stood at 12.43 times over the past 12 months, according to recent statistics released by the Abu Dhabi Securities Exchange and Dubai Financial Market.The most popular metric of stock analysis, the P/E Ratio is the relationship between a company’s stock price and earnings per share (EPS), with long-term investors commonly using the ratio and the dividend yield as asset allocation signals.

Logistics and transport services topped the list of most attractive platforms, with a P/E ratio of 6.65 times, followed by the contracting sector, 7.35 times; realty sector, 9.85 times; banking, 9.94 times and then insurance companies, 10.69.