Dubai up, Saudi flat ahead of budget

Qatar retreats as blue chips sell off

DUBAI, Dec 21, (RTRS): Middle Eastern stock markets were mixed on Monday as Dubai bounced back from the previous day’s losses while Saudi Arabia’s index was almost unchanged as investors awaited the release of the kingdom’s state budget, expected in the coming days.

The Saudi index fluctuated narrowly before ending down 0.01 percent at 6,930 points. Trading volume was modest as many investors were unwilling to trade without knowing the size of spending cuts expected in the budget.

However, petrochemical producer Saudi Basic Industries fell 1.7 percent to 84.75 riyals, heading towards its December low of 83.25 riyals.

“Current market sentiment is fragile and people are not willing to rotate into sectors that are heavily dependent on government spending or those that are exportoriented,” said Mohammad al Shammasi, head of asset management at Riyadh-based Derayah Financial.

Dubai’s index rebounded 2.5 percent to 3,101 points, gathering momentum on higher volumes in the final hour of trade as bargain buyers bought on dips. The benchmark is now 250 points above the year’s low.

Gainers outnumbered losers 19 to 7 with all blue chips rising after Sunday’s profit taking selloff. Emaar Properties and builder Drake & Scull recouped all of Sunday’s losses, rising 3.2 and 3.5 percent respectively. Both stocks are up over 8 percent from a week ago.

Abu Dhabi heavyweights Etisalat and National Bank of Abu Dhabi jumped 2.9 and 2.5 percent. Abu Dhabi’s benchmark climbed 0.9 percent in its fourth session of gains; trading volume was the second heaviest so far in December. On Sunday, it was the heaviest.

Qatar resumed trade after the market was closed for a national holiday on Sunday and the Doha benchmark slipped 0.1 percent. Losers outnumbered gainers 11 to 3, with Gulf International Services - a stock that was removed from MSCI’s emerging market index in November - leading declines; it retreated 3.3 percent.

Egypt’s index rose 0.8 percent, its sixth straight gain, with Commercial International Bank and Orascom Telecom carrying the market higher for a second day.

CIB, the bourse’s largest bank by market value, rose 2.6 percent. The lender is up 4.6 percent since Thursday’s close after agreeing to sell investment banking subsidiary CI Capital to Orascom Telecom for 1 billion Egyptian pounds ($128 million).

Orascom Telecom, the most heavily traded stock, surged 6.7 percent; it is up 8.5 percent since Thursday’s close.

Monday’s Highlights

Saudi Arabia

The index edged down 0.01 percent to 6,930 points.

Dubai

The index jumped 2.5 percent to 3,101 points.

Abu Dhabi

The index climbed 0.9 percent to 4,191 points.

Qatar

The index fell 0.1 percent to 9,906 points.

Egypt

The index rose 0.8 percent to 6,762 points.

Kuwait

The index climbed 0.8 percent to 5,614 points.

Bahrain

The index slipped 0.4 percent to 1,190 points.

Oman

The index advanced 0.9 percent to 5,404 points.