MARKET REPORT Regional stocks post modest gains
Most stock markets in the Arabian Gulf posted minor gains yesterday, reflecting last week’s positive close in international stocks and on the back of firmer oil prices.
In Saudi Arabia, the benchmark Tadawul index edged up 0.1 per cent to 8,114 points, lifted by gains in the petrochemical sector. Oil prices last week hit their highest in more than three years, with Brent crude trading at $74.87 a barrel, as the market awaited news from Washington on possible new US sanctions against Iran.
Saudi petrochemical companies such as National Industrialisation Company, Saudi Industrial Investment Group and blue-chip Saudi Basic Industries Corporation gained 3.1 per cent, 3 per cent and 0.8 per cent, respectively.
Outside of Saudi Arabia, Bahraini investment firm GFH Financial Group jumped 10.6 per cent after announcing it had hired Gulf International Bank to help it in its efforts to crosslist on the Saudi stock market.
The company also said it planned to raise its assets under management to $30 billion, from a current $6.2bn, according to its website.
An offer to sell all of the company’s real estate portfolio, also announced yesterday, offered further support to the shares.
The Bahraini index rose 1 per cent to 1,276 points, benefiting from GFH’s gains.
The Dubai index rose 0.8 per cent to 2,972 points, lifted by a 4.6 per cent gain in contractor Drake & Scull.
The shares dropped last week on news the company had not received approval to increase its capital through the entry of a new strategic partner. Abu Dhabi investor Tabarak, the largest shareholder in the Dubai contractor, reassured investors, saying in a statement last week that it was committed to maintaining its shareholding position in the company and to support it in securing new banking facilities and construction contracts.
The best performer in Dubai was Gulf General Investment, which jumped 12.6 per cent.
The conglomerate is in talks with lenders to restructure loans and credit lines after defaulting on a debt repayment last year.
The Abu Dhabi index posted a marginal gain of 0.1 per cent to 4,560 points, boosted by Arkan Building Materials, which jumped 11.7 per cent after reporting a year-on-year increase in first quarter net profit last week, to Dh11.7m from Dh10.6.