Arabian Gulf stocks gain on heavyweights

Arabian Gulf markets mostly ended higher yesterday, led by Dubai and Qatar and fueled by by heavyweight stocks, while Saudi market stayed firm for the second straight day following appointment of new market-friendly labour minister.

The Dubai index jumped 1.6 per cent, on a 2.6 per cent gain by the market’s largest listed developer, Emaar Properties, which hit a one-month high, closing at Dh5.4.

Shares in Damac Properties reached a four-week high, rising 2.6 per cent to Dh2.4.

A monthly Reuters poll of leading Middle East fund managers, published last Thursday, found sentiment shifting in favour of UAE equities after their poor performance so far this year.

Fifty-four percent of managers now expect to raise their allocations to UAE equities in the next three months and none plan to reduce allocations, the most positive balance since January 2017. The managers cited valuations, which have become cheap compared to booming markets such as Riyadh.

Saudi was flat to positive as investors were upbeat with the appointment of a prominent businessman as labour minister and as they await a possible MSCI upgrade to emerging markets status on May 20.

Saudi index added 0.1 per cent. Heavyweight National Commercial bank rose 1.14 per cent and Almarai jumped 4.5 per cent. Al Rajhi Bank closed 1.4 per cent down, reversing a two day rally during which it jumped 3.6 per cent, after businessman Ahmed bin Suleiman aL Rajhi, a son of the bank’s founder, was named Labour Minister.

The market as a whole is positive about Mr Rajhi’s appointment because he was a key figure in the private sector’s lobbying of the government to make its austerity and labour policies less damaging to businesses.

In Abu Dhabi, the index was up 0.2 per cent as Emirates Telecom rose 1.2 percent.

In Doha, the index rose 2.1 per cent, with main support coming from Industries Qatar that jumped 4.1 per cent and Qatar National Bank that went 2.8 per cent higher.

Egypt’s main index lost 1.6 per cent with most of its 30-listed stocks closing on a negative note.

Property developer Talaat Mostafa fell 9.8 per cent and Commercial International Bank lost 1.1 per cent.