Most stock markets in the Gulf lost steam on Monday after strong rises on the previous day due to climbing oil prices, but active trading volumes indicated investor sentiment remained positive. Egypt rose moderately in line with firm global bourses. The Saudi stock index, which had jumped 2.9 percent on Sunday, closed 0.1 percent lower as petrochemical bluechip Saudi Basic Industries, which had climbed 20 percent since mid-February, fell back 1.0 percent.
But there was active trade in second- and third-tier stocks such as Saudi Fisheries, which surged 5.9 percent. Abdullatif Industrial Investment Co gained 2.8 percent after its annual general meeting approved a 3 percent dividend payment for the fourth quarter. Dubai's index, which had also gained 2.9 percent on Sunday, rose a further 1.1 percent in its heaviest trading volume since last June.
Construction firm Arabtec was again the most heavily traded stock as it sunk 6.6 percent after saying in a brief statement that rumours former chief executive Hasan Ismaik would be appointed to its board were false. This was taken as a cue by speculators to take profits. The stock had previously soared more than 60 percent since late February after Ismaik raised his stake in the builder to 11.91 percent from 11.81 percent, causing wild speculation about his intentions. The stake has not changed since then.
Arabtec's pull-back failed to discourage investors in other stocks. Union Properties, the second most active stock, soared 14.4 percent and another second-tier real estate developer, Deyaar, added 6.5 percent. Abu Dhabi's index rose 0.2 percent as First Gulf Bank retreated 0.4 percent. But Qatar's market, which had been closed for a public holiday on Sunday, jumped 2.3 percent.
Oil-sensitive stocks were particularly strong, with drilling rig provider Gulf International Services up 8.9 percent. Among petrochemical producers, Mesaieed climbed 2.5 percent and Industries Qatar added 2.2 percent. Egypt's index rose 0.8 percent as Commercial International Bank gained 1.1 percent. Palm Hills Development added 2.2 percent to 2.32 Egyptian pounds after EFG Hermes started coverage of the stock with a "buy" rating and a fair value estimate of 3.45 pounds.
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