Gulf stocks follow gains in global equities

Most major Arabian Gulf markets closed higher yesterday, mirroring a rally in global markets amid hopes for a US-China trade agreement.

China is pushing US President Donald Trump to remove more tariffs imposed in September as part of a so-called Phase one trade deal, which would help to ease the broad economic damage inflicted by the trade dispute.

Many Gulf markets also benefited from higher valuations of financial stocks. Saudi Arabia’s index gained 1.7 per cent to 7,782 points, with National Commercial Bank, the kingdom’s largest lender, jumping 4.4 per cent and Al Rajhi Bank up 1.9 per cent. The latter said it had received central bank approval for the appointment of Walid Bin Abdullah Al-Moqbel as its chief executive. Abdullah Al Othaim

Markets soared 9.4 per cent, its biggest intraday gain since July 2012, after posting a 38.8 per cent rise in third-quarter profit. Elsewhere, the Company For Co-operative Insurance (Tawuniya) gained 3.8 per cent as it swung into profitability in the third quarter.

Among other stocks, City Cement climbed 4.1 per cent after its board proposed to reduce its capital, saying it had more than it required.

On Sunday, the cement maker reported third-quarter net profit of 50.5 million riyals (Dh49.5m), compared with a loss of 2.4 million riyals a year earlier.

Egypt’s blue-chip index ended up 1.1 per cent at 14,790 points as Commercial International Bank leapt 3.8 per cent, its biggest intraday rise since August 2018. The country’s largest lender reported a 23 per cent increase in third-quarter profit. The lender also said that its board had approved in principle the acquisition of a stake in a Kenyan bank.

In Abu Dhabi, the index closed 0.9 per cent higher at 5,154 points. Market heavyweight First Abu Dhabi Bank rose 1.2 per cent and Emirates Telecommunications Group added 1.1 per cent.

Dubai’s main share index slipped 0.7 per cent to 2,688 points, with blue-chip developer Emaar Properties falling 1.9 per cent and Emirates NBD shedding 0.9 per cent. However, Emaar Malls gained a further 1.3 per cent after the shopping mall operator reported a 12.1 per cent rise in third-quarter profit on Sunday.