Dubai stocks closed on a positive note on Thursday after 11 straight days of losses, while the Saudi market was flat as investors held back from taking new positions ahead of announcements of second quarter company results. The Dubai index inched up 0.2 percent, recovering from a course of unbroken declines since it recorded a two-month high on June 12.
Main support came from Union Properties which jumped 9.3 percent and Dubai Commercial Bank which rose 5.0 percent. Drake & Scull (DSI) jumped 3.3 percent to 0.75 dirhams ($0.20), reversing some of its earlier 5.3 percent losses that sent the shares to 0.70 dirhams ($0.18), its lowest ever.
DSI shares have fallen in the past three sessions and are down nearly 67 percent so far this year, as retail investors offloaded it amid concerns about its business outlook and an investigation into its former management team. The company said in a bourse filing on Thursday that the recent sell-off of its shares was not related to any major news, but due to a financial institution selling shares of one of the investors under a previous financing agreement.
In Saudi Arabia, the index closed flat, with many blue chips finishing in negative territory, as investors abstained from taking new positions before the announcement of second quarter financial results from Sunday. Property Developer Jabal Omar jumped 4.9 percent and Makkah Construction rose 1.0 percent.
Jabal Omar and Makkah have projects around the Grand Mosque in Mecca and shares of both companies often rise at this time of year as occupancy rates peak during the annual Haj pilgrimage, which is expected to start in August. Al Rajhi Bank shares lost 0.6 percent, National Commercial Bank declined 1.3 percent, and petrochemical giant SABIC lost 0.8 percent.
The Saudi index has risen 1.8 percent since June 20, after index provider MSCI added the kingdom's bourse to its emerging markets benchmark. In Abu Dhabi, the index rose 0.3 percent, backed by a 0.4 percent rise for First Abu Dhabi Bank.
Dana Gas, which fell 2.9 percent earlier in the session, recovered to close flat. The company said on Wednesday that it holds $6 million in a fund managed by an affiliate of Abraaj Investment Management Limited. Abraaj has been bruised by a dispute with some of its investors over the use of their money in a $1 billion healthcare fund. The group has denied it misused the funds.
The Doha index jumped 1.1 percent, backed by an 8.0 percent gain by Qatar Navigation and a 3.4 percent increase by Qatar Electricity and Water Co. Egypt's main index jumped 1.1 percent, with shares of Elsewedy Electric and Global Telecom gaining 3.3 percent and 3.8 percent respectively.
Comments
Comments are closed for this article.