Gulf stock markets surge Dubai at four week high

Date

2/5/2016 11:50:24 PM

(MENAFN- Khaleej Times)

Dubai stocks led a surge in the Middle East on Thursday as a second day of stronger oil prices helped to revive risk appetite.

Dubai's index rebounded 2.8 per cent to a four-week high of 3058 points in heavy trade trimming its losses this year to 2.9 per cent.

"A close above 3000 points is sign of an improving technical picture and leads to a resistance zone at 3130-3200 points" said a note by Kuwait-based Kamco. Medium- and long- term investors may begin accumulating stocks at those levels it added.

Blue-chip developer Emaar Properties jumped 6.1 per cent and rival Damac Properties climbed 4.3 per cent. Both companies are expected to report quarterly earnings in coming weeks.

In Abu Dhabi the index closed up 2.1 per cent in heavy trade cutting its 2016 losses to 3.9 per cent. Blue-chip banks helped lift the bourse with First Gulf Bank and National Bank of Abu Dhabi each trading up more than 3.0 per cent.

Dana Gas and National Marine Dredging surged 4.7 and 6.5 per cent respectively.

The Saudi index closed up 0.8 per cent at 5973 points 83 points below its high. Petrochemical producer Saudi Basic Industries closed 0.7 per cent lower at SR67.25 after Brent crude slipped below $35 a barrel; the stock had traded as high as SR71.00.

"The Gulf bourses are humming the same tune as oil prices" said a Riyadh-based equity analyst. "Although oil prices and regional equities markets have always been strongly correlated recently the correlation has strengthened."

Qatar's index jumped 2.1 per cent in modest trading volume. Kuwait's main index rose 1.6 per cent. Cairo's main index jumped 2.3 per cent to 6202 points as foreign buyers returned. Foreign investors who had mostly been exiting positions since the start of the year were net buyers on Thursday bourse data showed. - Reuters

Technical analysts at Cairo-based Pharos Research said this could be an opportunity to enter the Egyptian market.

"We think that any break above the 7100 level - which is the resistance line - would be a confirmation of a bullish rally" they said in a note to clients.

Commercial International Bank one of the Egyptian stocks preferred by foreign fund managers surged 4.9 per cent.

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