Most GCC stocks gain, Dubai leads
Most of the UAE and other GCC stock markets opened the week on a positive note, bolstered by the gains in the global equity markets after decline in US jobless rate announced on Friday.
Led by Dubai, the DFM General Index jumped 0.74 per cent to 2,781 points, helped nearly 15 per cent gains in stock prices of Agility and Amlak Finance.
It was highest level achieved by Amlak Finance since November 28, 2018. The Shariah-compliant finance company has risen in recent sessions following a court ruling that awarded Dh780 million ($212.36 million) in an arbitration.
Arabtec also gained 4.7 per cent after its Saudi subsidiary bagged SAR280 million contract in the kingdom. While Deyaar and Dubai Insurance also made smart gains of nine per cent and five per cent, respectively.
While Abu Dhabi index inched up 0.16 per cent on Sunday to close the day at 5,035 points, led by nearly 15 per cent jump in RAK National Insurance Co, 10 per cent rise inn United Arab Bank and 2.5 per cent rise in Julphar.
The pharmaceutical company Julphar on Sunday announced appointment of Juergen Lauterbach as chief finance and strategy officer on Sunday. His appointment follows a series of new hires for Julphar as the company takes steps to strengthen its senior management team.
Saudi Arabia's Tadawul index rose half a per cent to 7,962.7 points, lifted by nearly four per cent gain in Jabal Omar Development. The developer and hospitality service provider rose in last six sessions after Saudi Arabia launched a new visa regime for 49 countries and appealed to foreign companies to invest in tourism sector.
Among other regional stock exchanges, Muscat Securities Market, Qatar Stock Exchange and Bahrain Bourse closed nearly flat at 4,026.9 points, 10,313.8 and 1,511.99 points, respectively.
Regional geopolitics, weakening of oil price and US-China trade will continue to dominate the GCC equity market sentiments this week.
In addition, the regional bourses will follow the trend of the global equity markets. Globally, the US markets are expected to take cues from the corporate results as third-quarter earnings season sets in.
Results overall are expected to be relatively weak, with analysts forecasting earnings for S&P 500 companies to have declined 2.7 per cent in the third quarter from a year ago, based on Refinitiv's data.
"We are in a state of heightened economic policy uncertainty. That tamps down business investment," said Kristina Hooper, chief global market strategist at Invesco in New York.