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Reuters
Most major Gulf stock markets rose on Wednesday as some buyers returned from New Year holidays, and shares in Dubai’s blue chip Emaar group rebounded for a second straight day. Egypt lagged, however, led lower by a few blue chips.
Dubai’s index added 1.4 percent to 3,459 points in rising volume as Emaar Properties gained a further 2.9 percent. Emaar Development jumped 3.8 percent and Emaar Malls added 1.8 percent. Several Dubai stocks also rebounded on Wednesday, with amusement park operator DXB Entertainments surging 5 percent, although logistics firm Aramex stayed weak, edging down 0.2 percent.
The Dubai index has turned technically bullish this week, beginning to rebound from the bottom of an uptrend channel dating back to early 2016. A rise in coming months to near the top of the channel would not be surprising, and would take the index above 3,700 points.
Saudi Arabia’s index rebounded 0.7 percent to 7,224 points. Banks led the market with 10 of 12 gaining ground. National Commercial Bank, the biggest, surged 3.1 percent, although trading volume was modest.
The Saudi index edged up just 0.2 percent in 2017 but many fund managers expect a better 2018 because of higher government spending. They based the forecast on the market trading at 14.5 times estimated corporate earnings for 2019 expected decisions by MSCI and FTSE to include Riyadh in their emerging markets indexes, and the planned listing of oil giant Saudi Aramco in late 2018 fuelling interest in the market.
Blue chips were bought in Kuwait on Wednesday with National Bank of Kuwait, the biggest lender, gaining 2.4 percent and logistics giant Agility rising 1.6 percent. The Kuwaiti index climbed 1.4 percent.