Saudi under performs region but car-related shares rise again
Most stock markets in the Middle East made small gains on Monday with Egypt hitting yet another all-time high, while the Saudi Arabian index edged down.
DUBAI- Most stock markets in the Middle East made small gains on Monday with Egypt hitting yet another all-time high, while the Saudi Arabian index edged down.
The Riyadh index
.TASI
lost 0.1 percent; the banking sector was soft with Banque Saudi Fransi
1050.SE
dropping 1.3 percent.
Shares of telecommunications operator Atheeb
7040.SE
, which had been suspended by the capital markets regulator since Sept. 25, tumbled 3.1 percent.
The company on Monday issued a statement saying it was still waiting for authorities to grant it a unified licence, which would enable Atheeb to obtain a loan to build its spectrum and pay its dues to the telecommunications regulator.
Shares of car-related companies, however, resumed rising after the government said last week that it would next year lift a ban on women driving.
Car rental company United International Transport
4260.SE
(Budget Saudi) climbed 3.2 percent and car servicing company Saudi Automotive
4050.SE
jumped 4.0 percent in active trade.
Banking shares helped take Qatar's index
.QSI
0.1 percent higher; Masraf Al Rayan
MARK.QA
rose 1.5 percent.
The latest monthly Reuters poll of regional fund managers, published on Thursday, showed sentiment toward Qatar's stock market had on balance turned positive after it plunged in response to sanctions imposed by other Arab states.
Valuations have in some cases reached distressed levels and dividend yields are attractive. Masraf Al Rayan, for example, had a dividend yield of 5.5 percent as of Monday's close.
In Kuwait, some shares continued to be bid up after rising on Sunday on news that index compiler FTSE was upgrading Kuwait to secondary emerging market status. Warehousing company, Agility
AGLT.KW
, added a further 1.1 percent. The main index
.KWSE
finished almost flat.
The Dubai index
.DFMGI
rebounded 0.5 percent as most mid- to large-sized companies rose, including Emaar Properties
EMAR.DU
, which climbed 1.1 percent. It is expected soon to reveal the valuation of its local real estate development arm, in which it plans to offer a stake to the public.
In Abu Dhabi, the index
.ADI
added 0.4 percent as three of the top five most valuable shares rose; First Abu Dhabi Bank
FAB.AD
gained 0.5 percent.
Egypt's main index
.EGX30
rose 0.2 percent to 14,000 points, a record high, but closed 102 points below its intra-day high, showing substantial profit-taking pressure.
The index has gained momentum in the last 10 days as it has started to price in a reversal of tight monetary policy.
Egyptian Chemical Industries
EGCH.CA
, which is proceeding with a capital increase, soared almost 10 percent in its heaviest trade ever on Monday. But private equity firm Qalaa Holdings
CCAP.CA
lost 3.8 percent after it reported a wider net loss for the first half of the year.
HIGHLIGHTS
SAUDI ARABIA
* The index
.TASI
fell 0.1 percent to 7,224 points.
DUBAI
* The index
.DFMGI
added 0.5 percent to 3,561 points.
ABU DHABI
* The index
.ADI
rose 0.4 percent to 4,427 points.
QATAR
* The index
.QSI
edged up 0.1 percent to 8,302 points.
EGYPT
* The index
.EGX30
rose 0.2 percent to 14,000 points.
KUWAIT
* The index
.KWSE
added 0.04 percent to 6,675 points.
OMAN
* The index
.MSI
rose 0.6 percent to 5,186 points.
(Editing by Andrew Torchia and Alison Williams) ((celine.aswad@thomsonreuters.com)(+971 5 6224 7653)(Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))
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