DUBAI: Most Gulf markets extended gains on Monday, tracking global shares as a drop in commodity prices allayed fears of accelerating inflation and aggressive interest rate hikes.
Dubai’s main share index gained 0.5%, led by a 2.7% rise in top lender Emirates NBD.
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($463 million) from investors via its initial public offering (IPO).
The company, owned by the investment vehicle of Dubai’s ruler, had announced its plan on June 8 to sell a 12.5% stake by offering 625 million ordinary shares in its IPO.
Dubai stocks moved higher, supported by a rebound in international markets and the successful IPO of Tecom, said Wael Makarem, Senior Market Strategist – MENA at Exness.
“The offering has shown investors’ interest in Dubai but the market remains exposed to price corrections in the currently challenging global conditions.”
In Abu Dhabi, stocks added 0.3%, supported by a 3.6% jump in conglomerate Alpha Dhabi Holding as its unit signed a memorandum of understanding with a Libyan firm to develop a strategic long-term partnership and collaborate in renewable energy sector in Libya.
The Qatari index added 0.2%, with Qatar Gas Transport rising more than 3% after its cabinet approved increasing the percentage of non-Qatari investors’ ownership up to 100% of the co’s capital.
The benchmark index in Saudi Arabia, however, fell 0.7% in a choppy trade.
Oil prices, a key catalyst for the Gulf’s financial markets, were volatile following last week’s rout, as the market grappled with concerns over an economic slowdown versus worries about lost Russian supply amid sanctions over the Ukraine conflict.
Outside the Gulf, Egypt’s blue-chip index retreated 2%, with most of stocks in the negative territory including Fawry for Banking Technology and Electronic Payment, which lost about 10%.
According to Makarem, Egyptian stocks continued to fall under the weight of the selling pressure as international investors accelerated their retreat from the market.
“The Egyptian market remained exposed to the development in the aftermath of the G7 nations’ meeting concerning Ukraine.”
SAUDI ARABIA fell 0.7% to 11,427
ABU DHABI up 0.3% to 9,268
DUBAI added 0.5% to 3,218
QATAR gained 0.2% to 12,155
EGYPT dropped 2% to 9,255
BAHRAIN was up 0.1% to 1,811
OMAN closed flat at 4,117
KUWAIT rose 0.1% to 8,132.
Comments
Comments are closed.