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Reuters
Most stock markets in the Middle East fell again on Monday, dampened by geopolitics, although Abu Dhabi was supported by plans for an initial public offer of shares by the distribution unit of Abu Dhabi National Oil Co (ADNOC).
Some fund managers think there may be little downside left for Gulf markets now that valuations are no longer high, and believe the geopolitical worries may prove excessive.
“Geopolitical tensions are easy to provoke but also easy to ease – markets do not seek solutions to recover, only indications of solutions,†said Talal Samhouri, head of asset management at Amwal LLC in Doha.
Except for Bank Aljazira, which rose 0.6 percent, all Saudi banks fell with Banque Saudi Fransi losing 2.2 percent and National Commercial Bank falling 1.2 percent.
In Abu Dhabi, the index edged up 0.2 percent after ADNOC outlined plans for the IPO of its distribution unit, which could attract new money to the market. The offer price range is due to be announced on November 26. Dana Gas, which had tumbled 4.2 percent after a London court ruled against it in its effort to have $700 million of its outstanding Islamic bonds declared invalid, rebounded 2.9 percent. Dana plans to appeal the decision and is also fighting its case in a UAE court.
In Dubai, the index edged down 0.2 percent as construction firm Arabtec Holding lost 2.8 percent and Emaar Properties fell 1.2 percent. Qatar sank 0.3 percent as big banks slipped, with Qatar National Bank, the largest lender, falling 1.9 percent. In Egypt, the index lost 0.5 percent as Telecom Egypt Co. tumbled 4.2 percent.