Bulls take market by horns in Gulf countries

Abdul Basit/Dubai
Filed on August 26, 2015 | Last updated on August 26, 2015 at 06.22 am
Bulls take market by horns in Gulf countries
The Dubai Financial Market on Tuesday. Traders exchanged almost 720 million shares on the bourse, the most in more than two months.

(Dhes Handumon)

Gulf equities rebound strongly as Saudi Arabia, Dubai lead with new highs.

Bulls regained control of stock markets in Gulf countries, led by Saudi Arabia and Dubai, as Brent oil rose from a six-year low.

Capital markets in Saudi Arabia and Dubai are among the world's best gainers after Greece following a three-day selloff that dragged their 12-month price-to-earnings ratios to the lowest since at least December.

Saudi Arabia's Tadawul Index jumped 7.4 per cent, the most this year, to 7,543.05 points at close and traders exchanged about 593 million shares, the most in four months.

The Dubai Financial Market General Index climbed 4.6 per cent - the most since December - and closed at 3,558.4 points. Traders exchanged almost 720 million shares, the most in more than two months.

The Abu Dhabi Securities Market ranked third in the region as its index increased by 1.63 per cent to 4334.2 points.

Qatar's QE Index rose 1.2 per cent, Oman's MSM30 Index advanced 0.42 per cent and Kuwait's index increased 0.33 per cent. Bahraini stocks recorded a modest decline.

"It seems like the sentiment is getting better with the oil trading in green again," Riyadh-based Mohammed Al Suwayed, the head of capital and money markets at Adeem Capital told Bloomberg. "These levels are attractive for some investors, especially those who are looking to build positions in financial sector."

Brent, the pricing benchmark for half of the world's oil, rose three per cent to $43.96 per barrel, after falling to the lowest in more than six years on Monday. Governments in the GCC hold about 30 per cent of the world's proven reserves.

The Bloomberg GCC 200 Index, which tracks 200 of the region's top equities, increased the most since December from the lowest close in two years.

In Egypt, Commercial International Bank Egypt SAE's 4.4 per cent advance was the biggest contributor to the EGX 30 Index's 2.6 per cent increase. The gain, the steepest in more than a month, was poised to end a nine-day losing streak.

Gulf Finance House, Arabtec and Amlak emerged as top trading stocks with 141.2 million shares, 84.9 million shares, and 76 million shares respectively at the DFM. Among top gainers of the day, Amlak's value appreciated by 15 per cent, Dubai Parks' scrip jumped by 13 per cent and Gulf Finance House's value increased by 11.3 per cent.

In Abu Dhabi, Dana Gas' share price jumped by 14 per cent and Abu Dhabi Commercial Bank rose by 12 per cent.

Asia, Europe and US

Stocks markets across the globe lost trillions of dollars in market value over the last few weeks, erasing all gains for the entire year.

In China, Shanghai index opened on Tuesday more than six per cent lower to set a new eight-month low. Finally, it ended 7.6 per cent down.

European shares rose more than four per cent on Tuesday and look on track for their best one-day gain since late 2011. A rate cut from China providing added juice to a recovery from a bruising 48-hour sell-off.

US stocks also rebounded in the morning after a punishing day on the global markets, sailing away from China's unslowing slide.

US stocks rebounded sharply in ealry trade as investors sought out bargains a day after Wall Street turned in its worst performance in four years.


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