MARKET REPORT Pick-up after early losses in the Gulf

Arabian Gulf stock markets closed on a positive note yesterday, reversing some of their losses earlier in the day.

The Saudi index in particular closed higher, gaining 0.6 per cent to 7,729 points, after having plunged last week on foreign investors’ concerns over volatility in emerging markets.

The country’s main stock index fell below major technical support for the first time this year last week.

Yesterday’s pick-up was mostly thanks to local institutions, rather than local retail investors or foreign buyers, said Talal Samhouri, head of asset management at investment company Amwal.

“Local institutions are trying to shore up prices given last week’s decline,” he said.

Gains were across the board, with Dar Al Arkan Real Estate Development registering the highest trading volume and gaining 0.3 per cent, followed by Alina Bank, up 0.6 per cent.

Blue-chip Saudi Basic Industries Corporation (Sabic) climbed 1.7 per cent, following a steadying in oil prices at the end of last week, when Brent crude futures settled up 33 cents at $76.83 per barrel.

Shares in Saudi Arabia’s Nada Chemicals dropped 0.5 per cent after the company said it would halt production at some of its units for periods of about seven or 15 days for scheduled maintenance.

Most other markets closed in positive territory.

The Dubai index gained 0.6 per cent to 2,843 points, with Islamic Arab Insurance Co among the best performing stocks, up 4.4 per cent.

The company surged 10 per cent last week after direct deals or block trades were executed on the stock on 370.7 million worth of shares at Dh0.42.

In Abu Dhabi, the recent announcement of a potential three-way merger between Abu Dhabi Commercial Bank, Union National Bank and the unlisted Al Hilal Bank continued to act as a catalyst for investors.

On the exchange, which closed flat yesterday at 4,918 points, Abu Dhabi National Energy (Taqa) jumped 6.2 per cent, followed by another blue-chip, Aldar Properties, which gained 2.6 per cent.

In Kuwait the index gained 0.4 per cent to 5,325 points, while Bahrain’s climbed 0.3 per cent to 1,344 points.

The Omani index increased 0.5 per cent to 4,454 points. Egypt’s shed 0.4 percent to 15,750 points.