Gulf investors book profit ahead of Eid

Arabian Gulf stocks ended lower yesterday, led by losses in the Abu Dhabi market as investors cut positions amid low volumes ahead of the holidays for the festival of Eid.

Abu Dhabi stocks ended 2.1 per cent lower, led by a 3.5 per cent drop in First Abu Dhabi Bank as investors took profit on one of the best performing large-cap stocks this year in the UAE.

FAB shares are still up 21 per cent so far this year, outperforming a 5 per cent rise in Abu Dhabi index. Investors were cheered by UAE’s biggest lender’s strong earnings and its entry into the Saudi market.

Among other losers, telecom company Etisalat dropped 2.7 per cent and Abu Dhabi Commercial Bank slid 1.8 per cent.

The Dubai index also lost early momentum, ending 0.9 per cent lower. Emaar Properties remained a drag on the market, declining 1.7 per cent.

Dubai Islamic Bank, which had provided support to the market in early trading due to its strong rights issue, also ended 1.7 per cent lower.

The Qatar index dropped 0.9 per cent, hurt by a 2.2 per cent drop in market heavyweight Industries Qatar. Gulf investors are awaiting news of rebalancing of stocks on June 16 by index compiler FTSE Russell that could affect Middle East and North Africa shares as well.

The Saudi market, the region’s biggest stock market, was closed for Eid holidays, which marks the end of holy month of Ramadan.

In Egypt, investors scooped up financial and property stocks, seeking bargains after a recent spate of selling on concerns about political unrest ahead of a cut in energy subsidies.

Egypt announced on Tuesday new cuts to electricity subsidies, raising prices by an average of 26 per cent from July, the latest in a raft of tough economic reform.

Commercial International Bank rose almost 1 per cent and Medinet Nasr Housing jumped 6.3 per cent.

Meanwhile, emerging market stocks and currencies fell yesterday as a looming US Federal Reserve interest rate hike and fresh trade war concerns hit Turkey’s lira and South Africa’s rand.

MSCI’s emerging market equities index snapped two days of gains to fall 0.5 per cent with Asian bourses sustaining hefty losses.