Bank stocks lift most Gulf indexes

Most major Gulf markets rose yesterday as financial shares climbed, with Saudi leading the gains, though Egypt was pressured by a sell-off in blue chip stocks.

Saudi’s benchmark index ended up 0.7 per cent, with Al Rajhi Bank rising 1.2 per cent and Saudi Basic Industries gaining 0.9 per cent.

State-owned Saudi Aramco inched up 0.1 per cent. On Tuesday Aramco said Goldman Sachs may make additional purchases of the oil giant’s shares to support the price of the stock.

Arab National Bank lost 1.3 per cent. Post trading hours, the lender’s board proposed a lower second-half dividend. Outside of the Gulf, Egypt’s blue-chip index declined 0.5 per cent with 21 of its 30 stocks in the red, including Commercial International Bank, which was 1.3 per cent lower, and EFG Hermes, down 2.1 per cent. Exchange data yesterday showed foreign investors were net sellers of Egyptian stocks.

Dubai’s General Index index added 0.4 per cent, with the UAE’s largest sharia-compliant lender Dubai Islamic Bank and Dubai’s top lender by assets, Emirates NBD Bank increasing 1.1 per cent and 0.8 per cent respectively.

In Abu Dhabi the index climbed 0.4 per cent, driven by a 0.4 per cent rise in First Abu

Dhabi Bank and a 0.6 per cent gain in telecoms company Etisalat.

The Dubai government yesterday said it will spend a record Dh66.4 billion in 2020 as part of its budget, hiking outlays to stimulate the economy and support the Expo 2020 world fair. The budget spending is the highest, the emirate has ever allocated, focusing on infrastructure development and improving health and education sectors among others. State spending will increase by 17 per cent, compared with the original budget plan of Dh56.8bn for 2019.

The Qatari index also closed down 0.1 per cent, with Qatar National Bank, the Gulf’s largest lender, dropping 1 per cent and Commercial Bank shedding 1.1 per cent.

Dubai’s General Index index added 0.4%, with the sharia-compliant lender DIB and Emirates NBD