Bulls hold ground at GCC markets

Dubai - Oman led the rally as the MSM30 Index rose 1.5 per cent, the most since January, to 5,904.44 points at the close in Muscat.

The oil price rebound improved investors' sentiment in Gulf bourses and that's the reason GCC markets maintained a bullish trend on Sunday.
Oman led the rally as the MSM30 Index rose 1.5 per cent, the most since January, to 5,904.44 points at the close in Muscat.
The Dubai Financial Market General Index climbed 1.1 per cent to its highest level in more than a week, and Saudi Arabia's Tadawul All Share Index gained as much as 4.6 per cent before closing 1.1 per cent higher.
A sharp decline in blue chips and other stocks have made stocks more attractive to fund managers as well as retail investors, according to an equity analyst.
Oil price weakness was the main driver of the selloffs across the GCC earlier this month and its recovery put new energy into the region's markets.
The global oil benchmark Brent jumped by $2.49 or five per cent on Friday to $50.05 after reaching $51 a barrel. Brent gained 10 per cent on the week.
In addition to last week's oil's rebound, property shares may be supported by hopes that the US Federal Reserve will postpone an interest rate increase which analysts had previously expected next month. Most GCC countries keep their currencies pegged to the dollar and replicate the Fed's interest rate adjustments.
The DFM General Index increased to 3,689.55 points. The bourse recorded a total 10,480 trades where 24 scrips advanced out of total 34 traded. Trading volume increased to 655.6 million shares compared to 610.8 million last Thursday. Among top-trading stocks, Gulf Finance House ranked top with 188 million shares. Its share price also jumped by 5.11 per cent to Dh0.597.
The Abu Dhabi Securities Market was almost flat and closed at 4,453.62 points. The market witnessed 2,433 trades where 10 scrips improved values compared to a total of 30 stocks traded. Aldar Properties emerged as the top trader with 48.5 million shares.
Saudi stocks, which weigh on petrochemicals and other oil-related stocks, suffered the most from panic selling and was down 16.4 per cent month-to-date on Saturday. Kuwait closed 0.47 per cent up to close at 5,904.12 points. Qatar increased modestly, while Bahrain closed flat.
- abdulbasit@khaleejtimes.com