Egypt bourse resumes rise; Saudi declines, volatility low

Gulf markets end mixed in year-end lull

DUBAI, Dec 24, (RTRS): Egypt’s bourse resumed rising on Monday after an early-session dip brought back buying interest among foreign investors, while trading in the Gulf was lacklustre and volumes thin because of the yearend lull.

Cairo’s index gained 0.2 percent to 5,373 points, and has risen in nine of the last 12 sessions.

The market was open and showed little reaction when Standard & Poors’ cut Egypt’s long-term credit rating to ‘B-’ on Monday and said another cut was possible if deepening political turbulence undermined efforts to prop up the economy and public finances.

Orascom Construction Industries and Telecom Egypt each gained 0.7 percent.

In Saudi Arabia, the index declined 0.1 percent to finish at 6,881 points, down for a second session since Saturday’s sixweek high.

Volatility was low as undecided investors awaited cues from fourth-quarter earnings and the 2013 state budget, from which investors are hoping for a boost in government spending.

Elsewhere, profit-taking dragged down Qatar’s bourse for a second session from Thursday’s four-week high as banks declined.

Qatar’s market is among the worst-performing Gulf markets this year; it is attracting little interest despite a steady domestic economic outlook and attractive dividend yields.

Many investors have reduced expo- sure to the country, which has been moving more slowly than anticipated to develop infrastructure for hosting the 2022 soccer World Cup. Also, some analysts say Qatari companies may see relatively little benefit from mega-projects if they are too small to handle the deals.

Doha’s benchmark lost 0.4 percent on Monday to finish at 8,390 points, extending its year-to-date losses to 4.4 percent. Low trading volume exacerbated the situation.

“The market is trading in a range looking for a direction,” said a Doha-based trader. “It is hanging between the 8,450 resistance and the first, weak support of 8,370.”

Non-Qatari institutional investors are moving out of banks, and although local investors are accumulating some names in the sector, poor performance of banking shares is weighing on the market, the trader added.

Losers outnumbered gainers 13 to five on the 20-stock index. Masraf Al Rayan fell 1.4 percent and Qatar National Bank shed 1.0 percent.

In the UAE, Dubai’s index advanced 0.09 percent. Retail investors dominated with institutionals away, waiting for next year to start.

Ajman Bank extended gains, up 3.9 percent to 1.35 dirhams. In the last eight days it has climbed from around 1.10 dirhams on unconfirmed talk that institutions may buy a large stake in it.

Abu Dhabi’s benchmark climbed 0.3 percent to 2,638 points. It faces major technical resistance at 2,640 points, where it bottomed in mid-October and late November, and any clean break above this level would be at least shortterm bullish.

Elsewhere, Kuwait’s bourse ended 0.07 percent lower.

Egypt

The index gained 0.2 percent to 5,373 points.

Saudi Arabia

The benchmark slipped 0.1 percent to 6,881 points.

Qatar

The index slipped 0.4 percent to 8,390 points.

Dubai

The index ticked up 0.09 percent to 1,608 points.

Abu Dhabi

The index gained 0.3 percent to 2,638 points.

Oman

The index declined 0.3 percent to 5,684 points.

Kuwait

The index eased 0.07 percent to 5,959 points.

Bahrain

The index gained 0.3 percent to 1,045 points.