Stock markets in the UAE and Qatar rose on Sunday on hopes for an index upgrade by MSCI, and gains by world equities last week helped boost most Gulf bourses. Dubai's bellwether Emaar Properties ended at a three-month high, surging 5.5 percent to 2.86 dirhams, its highest close since August 29.
"Emaar is on top of the list for joining an MSCI upgrade," said Talal Touqan, from Al Ramz Securities. "Breaking 2.75 was a major step towards exiting the downward spiral." Index compiler MSCI said on Friday it will announce on December 14 whether it will upgrade UAE and Qatar to emerging market status from frontier markets, having delayed its decision from June.
Dubai's benchmark gained 1.8 percent to close at its highest finish since October 31.
On Wednesday, the UAE said it would set up a 10 billion dirham ($2.7 billion) fund to help pay low-income citizens' debts and raise wages of some state employees, boosting sentiment on local markets. "The 10 billion fund is rather like a windfall for banks that have strong retail exposure," said Touqan. Abu Dhabi's index rose 1.2 percent, with First Gulf Bank climbing 5.3 percent, and National Bank of Abu Dhabi and Abu Dhabi Commercial Bank each rising 2.8 percent.
In Qatar, the index rose 1.1 percent to a three-week high. Bluechips led gainers, with Qatar Telecom (Qtel) rising 3.6 percent, Industries Qatar adding 1.3 percent and Masraf Al Rayan climbing 1.2 percent.
"Expectations from the market is positive, a good announcement could come that could be a positive catalyst regionally," said Marwan Shurrab from Gulfmena Investments.
In Oman shares ended at a two-week high, with most Gulf markets making gains as upbeat world equities buoyed sentiment. Muscat's index rose 0.6 percent to its highest close since November 17, with telecom firm Nawras rising 1.8 percent and Oman Telecom gaining 0.7 percent.
"Overall global sentiment has improved, along with the institutions looking (for) bottom fishing and good dividend stories in Oman," said Kanaga Sundar, Gulf Baader Capital Markets head of research.
In Kuwait, the benchmark slipped 0.1 percent, halting a four-day advance.
Logistics firm Agility fell 1.3 percent after saying on Sunday it has bid about $92.4 mln to acquire a stake in Kuwait Health Assurance Co.
World stocks edged higher on Friday and registered their biggest weekly advance since March 2009 as data showed a drop in the US jobless rate.
In Saudi Arabia, the index inched down 0.01 percent after gaining 1 percent on Saturday after a rise in oil prices. The Saudi petrochemical index shed 0.3 percent over worries on shrinking demand from China. Saudi Basic Industries Corp (SABIC) lost 0.5 percent.
Comments
Comments are closed for this article.