Gulf stocks trim worst in 7 years after oil rebounds

A worker waits to connect a drill bit on Endeavor Energy Resources LP's Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas, U.S., on Friday, Dec. 12, 2014. Of all the booming U.S. oil regions set soaring by a drilling renaissance in shale rock, the Permian and Bakken basins are among the most vulnerable to oil prices that settled at $57.81 a barrel Dec. 12. With enough crude by some counts to exceed the reserves of Saudi Arabia, they’re also the most critical to the future of the U.S. shale boom. Photographer: Brittany Sowacke/Bloomberg

The DFM General Index increased 4.9 percent to the highest level since Jan. 6, taking its three-day gain to 11 percent. The measure’s 30-day volatility is near the highest in a year following the swings in January.
Abu Dhabi’s ADX General Index advanced 3.7 percent. First Gulf Bank PJSC was the biggest contributor to gains with a 12.4 percent jump, the most since May 2005. A shareholder in the U.A.E.’s third-largest lender canceled a share sale valued at about 1.2 billion dirhams ($327 million), according to people familiar with the matter, after the transaction had already been priced and allocated to investors. The bank is part owned by the government.
Dana Gas PJSC reported a temporary interruption in gas flow in Iraq at the end of last week, the company said in statement to the Abu Dhabi stock market. The shares dropped 2.3 percent.

Saudi Arabian Jump
Saudi Arabia’s benchmark added 3.6 percent, taking its four-day gain to 8.5 percent. Saudi Basic Industries Corp., one of the world’s biggest petrochemicals companies, rose 4.9 percent, the most since August on a closing basis. National Commercial Bank, the kingdom’s largest lender, jumped 7.5 percent.
“The sentiment is improving as oil prices rebound,” said Mohammed Alsuwayed, the Riyadh-based head of capital and money markets at Adeem Capital. “Saudi stocks are regaining investors’ confidence and trust and today’s performance is a follow-up to last week’s gains. This is likely to continue for the rest of the week.”
Yanbu Cement, a Jeddah-based cement and clinker manufacturer, rose 9.9 percent, the most since March 2011. The company’s board recommended on Thursday a dividend of 3.5 riyals for the second half of 2015.
Oman’s MSM 30 Index added 3.3 percent, the most since Dec. 22. Bahrain’s BB All Share Index rose 1.3 percent, also the most since December, and Qatar’s QE Index advanced 2.3 percent.
Kuwait’s SE Price Index increased 2.1 percent, the biggest jump in more than a year. Kuwait Finance House rose 5.3 percent after the company’s fourth-quarter profit climbed 10 percent and the board recommended a 17-fil cash dividend for 2015 and one bonus share for every 10 held. The stock’s three-day gain is the biggest since 2009.

Egypt Volatility
Egypt’s EGX 30 Index rose 0.9 percent, poised to extend its winning streak to five days, the longest in more than a month. That pares the gauge’s decline to 14 percent this month. The measure’s 30-day volatility reading is near the highest since July 2013.
“This rebound indicates that the market may have found its bottom,” said Hesham Wafa, a Cairo-based institutional sales trader at Mubasher Trade. “We’re seeing strong interest from retail investors on the back of the advance in global markets. Much of where we go from here depends on the stabilization of oil prices, but we’re a long way from declaring a definitive end to the down trend.”
Emaar Misr for Development SAE, the country’s second- biggest real estate developer, advanced 1.4 percent. The stock was added by the bourse to the benchmark index for the first time since the company went public in June. Commercial International Bank Egypt SAE’s 1.2 percent increase was the biggest contributor to the EGX 30’s gains. It accounts for about 31 percent of the gauge.

Leave a Reply

Send this to a friend